FASB_Codification_Exercise_Solution

FASB_Codification_Exercise_Solution - 3. Definition of...

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FASB Codification Exercise Solution 1. What are three primary goals in the development of the Codification? 1. Simplify user access by codifying all authoritative US GAAP in one spot. 2. Ensure that the codified content accurately represented authoritative US GAAP as of July 1, 2009. 3. Create a codification research system that is up to date for the released results of standard-setting activity. 2. Accounting Standards Update No. 2010-16. This Update clarifies that an entity should not accrue a casino jackpot liability (or portions thereof) before the jackpot is won if the entity can avoid paying that jackpot. Jackpots should be accrued and charged to revenue when an entity has the obligation to pay the jackpot. The guidance under Topic 924 applies to both base and progressive jackpots.
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Unformatted text preview: 3. Definition of ‘Cash’. Consistent with common usage, cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. All charges and credits to those accounts are cash receipts or payments to both the entity owning the account and the bank holding it. For example, a bank's granting of a loan by crediting the proceeds to a customer's demand deposit account is a cash payment by the bank and a cash receipt of the customer when the entry is made....
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This note was uploaded on 02/14/2011 for the course ACCT 251 taught by Professor Bouker during the Spring '11 term at Bergen Community College.

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