CH 4 Review

Question 1

what are the two objective of accounting research

Answer 1

• account for transactions/ items in a manner that is appropriate and supportable based on authoritative guidance
• the create documentation describing the research performed and supporting the conclusion reached

Question 2

Why do we want written documentation of the company’s accounting positions

Answer 2

• creates an audit trail.
• serves as a historical reference
• provides support for the company’s position int he event it is ever questioned

Question 3

what are the two common methods for communicating accounting research

Answer 3

• emails
• accounting issues memoranda

Question 4

email is often used for ____________ research questions

Answer 4

limited-scope

Question 5

a memo is generally used to document accounting for transaction that is ________, ________, or _________

Answer 5

complex, judgmental, or highly material

Question 6

headers should be _______ in your memos

Answer 6

bold

Question 7

what is the typical memo format called

Answer 7

standard memo format

Question 8

what are the 5 sections in the standard memo format

Answer 8

• facts
• issues
• analysis
• conclusion
• financial statement and disclosure impacts

Question 9

what section of the issues memo includes all relevant information necessary for understanding the transaction and its accounting

Answer 9

The Facts section

Question 10

what can be added into the facts section that can enhance a reader’s understanding of the relationship and parties involved

Answer 10

picture of a transaction

Question 11

what is the section in a memo where each researchable question that will be addressed in your memo will be listed

Answer 11

issue(s)

Question 12

each issue should be presented in the form of a ________

Answer 12

question

Question 13

what section of the memo addresses each issue identified, one at time

Answer 13

analysis

Question 14

the analysis section should include ___________ plus researcher’s own _________ about how guidance relates to the issue

Answer 14

guidance excerpts; commentary

Question 15

in the analysis section, discuss all potential __________

Answer 15

alternatives

Question 16

what is a “guidance sandwich”

Answer 16

commentary before an after all guidance excerpts.

Question 17

what section of the memo emphasizes key points from the analysis that is in support

Answer 17

conclusion

Question 18

the conclusion should not introduce new ______________ or new _______________

Answer 18

guidance; arguments

Question 19

when documenting the conclusion, ______ your most compelling points

Answer 19

summarize

Question 20

how many conclusion sections should you have?

Answer 20

might be one single conclusion or multiple depending on the complexity of each issue analyzed

Question 21

when it is applicable you can conclude your memo with summary ______________________

Answer 21

financial statement and disclosure impacts

Question 22

is it better to use excerpts or summaries of guidance

Answer 22

excerpts

Question 23

use _________ if you must insert your own explanations into an excerpted quote

Answer 23

brackets

Question 24

use ________ if you skip over some text in a quote or don’t quote the full sentence

Answer 24

ellipses