Financial Accounting Standards Board Codification Test! Trivia Quiz

The Codification supersedes all levels of the previous accounting hierarchy. This means that the Codification replaces and overrides Level A, Level B, Level C, and Level D of the previous accounting hierarchy. The Codification is a comprehensive and authoritative source of accounting standards, and it is designed to simplify and streamline the accounting literature by consolidating all relevant guidance into one centralized system. By superseding all levels of the previous accounting hierarchy, the Codification ensures consistency and clarity in accounting standards.

The correct answer is "Converge international accounting standards". This is not one of the primary goals of the Codification. The primary goals of the Codification are to create a codification research system that is up to date for the released results of standard-setting activity, to simplify user access by codifying all authoritative US GAAP in one spot, and to ensure that the codified content accurately represents authoritative US GAAP as of July 1, 2009.

The given answer is true. According to the assigned reading, relevant portions of authoritative content issued by the SEC and selected SEC staff interpretations and administrative guidance have been included for reference in the Codification. This means that the Codification includes important information and guidance from the SEC, making the answer "True" correct.

The correct answer is "Line" because the structure of the codification includes sections, topics, sub-topics, sections, and areas, but it does not include lines.

The correct answer is 500's for EXPENSES. According to the assigned reading, the numbering of the areas of the codification includes 200's for PRESENTATION, 400's for LIABILITIES, 600's for REVENUES, and 800's for BROAD TRANSACTIONS. Therefore, the 500's for EXPENSES is not included in the numbering of the areas of the codification.

The given citation "ASC 605-10-25" refers to the specific section in the accounting standards that deals with revenue recognition. Among the given options, the answer "REVENUES: Revenue Recognition - Overall - Recognition" is the one that best relates to the citation. It aligns with the topic, subtopic, and section mentioned in the question.

The codification was first published as of July 1, 2009. The question asks for the effective date of the codification for interim or annual periods ending after the publication date. Therefore, the correct answer is Sept 15, 2009, as it is the only option that falls after July 1, 2009.

The document provides tips for identifying relevant areas, but it specifically states that the Revenue and Expenses Areas do not contain guidance about specific individual balance sheet accounts. Therefore, the correct answer is that the Revenue and Expenses Areas contain guidance about specific individual balance sheet accounts (e.g., sales revenue, employee compensation).

The correct answer is XXX-YY-30 Initial Measurement, XXX-YY-10 Objectives, XXX-YY-50 Disclosure. This is because these sections are mentioned in the given options and are included in the Standardized Codification Sections. The other option, XXX-YY-05 Status, is not mentioned in the given options and therefore is not included in the Standardized Codification Sections.

Prior to the codification, GAAP was issued via several pronouncements, including Statements of Financial Accounting Standards (SFAC), FASB Interpretations, and FASB Staff Position. IASB Rulings were not part of the pronouncements issued prior to the codification.