Questions and Answers: 166
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NEW QUESTION: 1
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 2
In 1990, Brighton Co. changed from the individual item approach to the aggregate approach in applying
the lower of FIFO cost or market to inventories. The cumulative effect of this change should be reported in
Brighton's financial statements as a:
A. Component of income from continuing operations, without separate disclosure.
B. Retrospective adjustment on the retained earnings statement, with separate disclosure.
C. Component of income from continuing operations, with separate disclosure.
D. Component of income after continuing operations, with separate disclosure.
Answer: B
Explanation:
Choice "a" is correct. A change in the composition of the elements of cost such as changing from the
individual item approach to the aggregate approach in applying the lower of FIFO cost or market to
inventories (LCM is covered in F4) is an example of a change in accounting principle. The cumulative
effect of the change in accounting principle should now be shown on the retained earnings statement as
an adjustment to the beginning balance of retained earnings, in what is called retrospective application.
Choices "b", "c", and "d" are incorrect. The cumulative effect of a change in accounting principle is now
reported on the retained earnings statement, not the income statement. Most of these types of changes
(changes in accounting principle) used to be reported on the income statement. SFAS No. 154 changed
that.
NEW QUESTION: 3
An engineer is segmenting WLAN traffic by security options after the client has received an IP address. Which two security options are possible? (Choose two.)
A. Cisco Key Integrity Protocol
B. 802.1x
C. PSK
D. VPN pass-through
E. web policy
Answer: D,E