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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 firewall on a computer to restrict inbound traffic
B. Configure a computer to connect to a network account server.
C. Configure a computer to prevent it from accessing data on the network.
D. Restrict access to the files on a local hard disk.
E. Remove data from a hard disk so that the computer can be recycle
Answer: B
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. financial dimensions
B. procurement category hierarchies
C. item groups
D. item model groups
E. procurement categories
Answer: C
NEW QUESTION: 4
A. Cisco AnyConnect Secure Mobility Client
B. Cisco IPS
C. Cisco IDS
D. Metro Ethernet
Answer: B
