Question 1

To assist with citation of the Accounting Standards Codification, the FASB created a numerical system that uses which of the following formats?

Accepted Answer

The FASB created a numerical system that uses a three-digit number between 105-999 to identify topics in the Accounting Standards Codification. This system is used for citation purposes.

Question 2

Which statement is CORRECT regarding the SEC?

Accepted Answer

All three statements are correct. The SEC has the mandate to oversee public companies and the U.S. capital markets. It also issues guidance on accounting principles, which public companies must follow to provide accurate and reliable financial statements.

Question 3

Which of the following International Accounting Standards deals with international guidance for accounting for income taxes?

Accepted Answer

IAS 12 deals with international guidance for accounting for income taxes. ASC 740 (US GAAP) and SFAS 109 (previous US GAAP) also deal with accounting for income taxes, but they are specific to the United States and are not international standards. IAS 29 deals with accounting for hyperinflation.

Question 4

A position taken in a previously filed return or expected to be taken in a future return is known as:

Accepted Answer

A tax position refers to a position taken on a tax return, either in the past or expected to be taken in the future. It can involve the treatment of income, deductions, tax credits, or other tax-related issues.

Question 5

Most research using the Codification is expected to be performed using the:

Accepted Answer

The answer of Most research using the Codification is expected...

Question 6

As part of its Checkpoint series, Thomson Reuters offers:

Accepted Answer

All three options (Audit and Accounting Disclosure Manual, GAAP Practice Manual, and SEC compliance) are part of Thomson Reuters Checkpoint series.

Question 7

While browsing through Codification structure, all of the two-digit subtopics and three-digit intersection topics are displayed on the:

Accepted Answer

All of the two-digit subtopics and three-digit intersection topics are displayed on the general topic landing page of the Codification structure.

Question 8

Deferred tax assets represent:

Accepted Answer

Deferred tax assets represent future deductions that will reduce the amount of taxable income in future tax periods. These deductions may arise from items such as tax credits, net operating losses, and other temporary differences between book and tax income.

Question 9

Which of the following functions provides a printer-friendly version of a document in the Codification Research System (CRS)?

Accepted Answer

The Print function provides a printer-friendly version of a document in the Codification Research System (CRS).

Question 10

The Go To function works in a similar fashion to a:

Accepted Answer

The Go To function allows the user to search for a specific citation or section within a tax service, making it similar to a Search by citation function.

Question 11

Which of the following represents the correct Codification structure?

Accepted Answer

The correct Codification structure is Topics-Subtopics-Sections-Subsections, which is the hierarchical organization used by the Financial Accounting Standards Board (FASB) for the Accounting Standards Codification.

Question 12

Which of the following are missions of the International Accounting Standards Board (IASB)?

Accepted Answer

All three choices are correct missions of the IASB.

Question 13

Which of the following statements is CORRECT regarding the FASB Accounting Standards Codification Research System (CRS)?

Accepted Answer

The answer of Which of the following statements is CORRECT...

Question 14

Subsequent to Codification, changes to guidance in the Codification are now made through:

Accepted Answer

Changes to guidance in the Codification are now made through accounting standards updates, which are issued by the Financial Accounting Standards Board (FASB). Updates are intended to improve the Codification, clarify guidance, and address emerging issues. XBRL elements are used for tagging financial data, and issuance of a new statement of position is a type of guidance that was superseded by the Codification.

Question 15

Under the FASB Codification, guidance for income taxes is found in:

Accepted Answer

ASC 740 provides guidance for income taxes under the FASB Codification. ASC Statement 133 relates to accounting for derivative instruments and hedging activities, IAS 12 is the international standard for income taxes, and SFAS 109 is the previous standard for accounting for income taxes.

Question 16

Which statement is CORRECT regarding accounting for income taxes in a financial statement?

Accepted Answer

Accounting for income taxes must reflect the differences between financial statement and tax return reporting. The income tax provision includes not only the taxes paid for that reporting period but also the deferred taxes resulting from temporary differences between the financial statement and tax return reporting. This is based on the deferred tax model, which recognizes the future tax consequences of events that have been recognized on the financial statement but have not yet been recognized on the tax return. Therefore, items of income and expense may be treated differently for book and tax purposes, and the resulting deferred tax assets and liabilities must be reflected in the financial statement.

Question 17

Accounting Research Manager, an online database to provide accounting, auditing, and other SEC authoritative literature, is a product of:

Accepted Answer

Accounting Research Manager is a product of CCH IntelliConnect, which is a platform for tax and accounting professionals that provides access to a comprehensive range of analytical and research solutions, as well as tax and accounting news and current awareness tools. Checkpoint and WG&L are both products of Thomson Reuters, while Westlaw is a product of Thomson Reuters' legal division.

Question 18

The main advantage of the FASB Codification is:

Accepted Answer

The FASB Codification organizes accounting standards by topic, making it easier to access and understand the relevant guidance.

Question 19

Pre-codification literature issued by various standard setters includes:

Accepted Answer

Pre-codification literature issued by various standard setters includes all three options: Statements of Financial Accounting Standards, Derivative Implementation Group Issues, and Accounting Research Bulletins.

Question 20

In the United States, GAAP comes under the purview of the:

Accepted Answer

The answer of In the United States, GAAP comes under...

Quiz 10: Financial Accounting Research