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NEW QUESTION: 1
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List B represents the general accounting treatment
required for these transactions. These treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the
accounting change or error correction in the 1993 financial statements, and do not restate the 1992
financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust
1 992 beginning retained earnings if the error or change affects a period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but do not restate
1 992 financial statements.
Item to Be Answered
The equipment that Quo manufactures is sold with a five-year warranty. Because of a production
breakthrough, Quo reduced its computation of warranty costs from 3% of sales to 1% of sales.
List B (Select one)
A. Retroactive or retrospective restatement approach.
B. Cumulative effect approach.
C. Prospective approach.
Answer: C
Explanation:
Choice "C" is correct. This affects only the prospective (current and subsequent) periods - not prior
periods, not retained earnings.
NEW QUESTION: 2
In the context of computers on a network, what does "bind" mean?
A. Configure a computer to connect to a network account server.
B. Configure a firewall on a computer to restrict inbound traffic
C. Remove data from a hard disk so that the computer can be recycle
D. Restrict access to the files on a local hard disk.
E. Configure a computer to prevent it from accessing data on the network.
Answer: A
Explanation:
Reference:http://support.apple.com/kb/HT4782(expand the firstnode and search network account server)
NEW QUESTION: 3
You need to configure system functionality for pickle type reporting.
What should you use?
A. item groups
B. financial dimensions
C. item model groups
D. procurement categories
E. procurement category hierarchies
Answer: A
NEW QUESTION: 4
A. Metro Ethernet
B. Cisco IPS
C. Cisco IDS
D. Cisco AnyConnect Secure Mobility Client
Answer: B
