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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 1992 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 1992 financial statements.
Item to Be Answered
Quo manufactures heavy equipment to customer specifications on a contract basis. On the basis that it is preferable, accounting for these long-term contracts was switched from the completed-contract method to the percentage-of-completion method.
List B (Select one)
A. Prospective approach.
B. Retroactive or retrospective restatement approach.
C. Cumulative effect approach.
Answer: B

NEW QUESTION: 2
Anonymity can be protected in blockchain applications by use of which of the following?
A. End-to-end encryption
B. Blockchain-based data cubes
C. Centralized application hosting
D. Cryptographic hashing
Answer: A

NEW QUESTION: 3
In which of the following ways are calls and put options used by the options investor in purchase and sales transaction?
I. A long call allows the investor to purchase the underlying security at the specified strike price after the option expiration date
II. Along put allows the investor to sell the underlying security at the specified strike price until the option expiration date
III. An investor who is short a call is at the underlying security at the specified strike price if a call option is exercised after the option expiration date
IV.
An investor who is short a put is obligated to buy the underlying security at the specified strike price if a put option is exercised by the option expiration date
A. II and III only
B. I and II only
C. II and IV only
D. I and III only
Answer: C