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NEW QUESTION: 1
When residual risk is minimized:
A. acceptable risk is probable.
B. risk is transferable.
C. control risk is reduced.
D. transferred risk is acceptable.
Answer: A
Explanation:
Since residual risk is the risk that remains after putting into place an effective risk management program, it is probable that the organization will decide that it is an acceptable risk if sufficiently minimized. Transferred risk is risk that has been assumed by a third party, therefore its magnitude is not relevant. Accordingly, choices B and D are incorrect since transferred risk does not necessarily indicate whether risk is at an acceptable level. Minimizing residual risk will not reduce control risk.

NEW QUESTION: 2
During 1994, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted
average method. Inventory balances under each method were as follows:

Orca's income tax rate is 30%.
Orca should report the cumulative effect of this accounting change as a(n):
A. Component of income after extraordinary items.
B. Component of income from continuing operations.
C. Adjustment to beginning retained earnings.
D. Extraordinary item.
Answer: C
Explanation:
Choice "a" is correct. The cumulative effect of a change in accounting principle is shown as an adjustment
to beginning retained earnings.
Choice "b" is incorrect. The cumulative effect of a change in accounting principle is now presented as a
separate category on the retained earnings statement and is not a component of net income.
Choice "c" is incorrect. Extraordinary items are unusual and infrequent in nature. Extraordinary items
have nothing to do with changes in accounting principle.
Choice "d" is incorrect. A change in accounting principle affects retained earnings, not the income
statement, under SFAS No. 154.

NEW QUESTION: 3
With fail2ban what is a 'jail'?
A. A netfilter rules chain blocking offending IP addresses for a particular service.
B. The chroot environment in which fail2ban runs.
C. A group of services on the server which should be monitored for similar attack patterns in the log files.
D. A filter definition and a set of one or more actions to take when the filter is matched.
Answer: D