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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
Quo changed from LIFO to FIFO to account for its finished goods inventory.
List B (Select one)
A. Retroactive or retrospective restatement approach.
B. Prospective approach.
C. Cumulative effect approach.
Answer: A
Explanation:
Choice "B" is correct. A change in accounting principle should be shown in the retained earnings
statement of the earliest year presented as an adjustment of the beginning balance. All prior year financial
statements are recast.

NEW QUESTION: 2
An IS auditor finds out-of-range data in some tables of a database. Which of the following controls should the IS auditor recommend to avoid this situation?
A. Log all table update transactions.
B. Use tracing and tagging.
C. implement integrity constraints in the database.
D. implement before-and-after image reporting.
Answer: C
Explanation:
Implementing integrity constraints in the database is a preventive control, because data is checked against predefined tables or rules preventing any undefined data from being entered. Logging all table update transactions and implementing before-and-after image reporting are detective controls that would not avoid the situation. Tracing and tagging are used to test application systems and controls and could not prevent out-of-range data.

NEW QUESTION: 3
HOTSPOT
Purchasing Accounts in a Microsoft Products and Services Agreement (MPSA) are used to define the purchasing entities across an organization.
For each of the following statements, select Yes if the statement is true. Otherwise, select No.

Answer:
Explanation:

NEW QUESTION: 4
Which statement about DH group is true?
A. The DH group is negotiated in IPsec phase-2.
B. The DH group does not provide data authentication.
C. The DH group is used to establish a shared key over a secured medium.
D. The DH group is used to provide data confidentiality.
Answer: B