C) FASB Accounting Standards Codification: the FASB Accounting Standards Codification, is the primary source of GAAP,. The FASB Accounting Standards Codification is an electronic database that integrates and topically organizes the U.S. accounting standards (GAAP). Codification is important because it is the only source of authoritative U.S. GAAP for companies to determine how to record their transactions, events, or circumstances, and how to report the results in their financial statements. Use the Codification to determine :

How to recognize, value, and depreciate a piece of equipment also Inventory.

Be prepared to show your manager the specific FASB ASC references that provide the appropriate guidance.