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NEW QUESTION: 1
Answer:
Explanation:
NEW QUESTION: 2
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
During 1993, Quo determined that an insurance premium paid and entirely expensed in 1992 was for the
period January 1, 1992, through January 1, 1994.
List B (Select one)
A. Retroactive or retrospective restatement approach.
B. Prospective approach.
C. Cumulative effect approach.
Answer: A
Explanation:
Choice "B" is correct. If comparative FS are issued, restate prior year's FS. If comparative FS are not
issued, restate prior year-end's retained earnings account by "adjusting" (net of tax) the opening balance
of the current retained earnings statement.
NEW QUESTION: 3
Which three statements are true about the purpose of checkpoints? (Choose three.)
A. They ensure that uncommitted transactions are rolled back in case of an instance failure.
B. They ensure that all the dirty buffers are written to disk during a normal shutdown.
C. They reduce the time required for recovery in case of an instance failure.
D. They ensure that instance recovery starts in the event of an instance failure.
E. They ensure that dirty buffers in the buffer cache are written to disk regularly.
Answer: B,C,E
Explanation:
Explanation/Reference:
References: http://docs.oracle.com/cd/E36909_01/server.1111/e25789/startup.htm#BABGDACG