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NEW QUESTION: 1
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, with separate disclosure.
B. Retrospective adjustment on the retained earnings statement, with separate disclosure.
C. Component of income after continuing operations, with separate disclosure.
D. Component of income from continuing operations, without 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: 2
Click the Exhibit button.

Which combination of BGP attributes will be chosen as the best path for prefix 19.0.0.0/8?
A. eBGP, MED 5000
B. iBGP, MED 4000
C. iBGP, MED 3000
D. eBGP, MED 6000
Answer: C

NEW QUESTION: 3
In which one of these areas do you store user credentials for accounts that are involved with communication between your company and a communications partner? Choose the correct answer.
A. In output channel definition
B. In the communication arrangement
C. In the communication scenario
D. In the communication system
Answer: B

NEW QUESTION: 4
Why did physicians remain independent of corporate settings even after the medical profession became well recognized?
A. Licensure laws had not yet been passed.
B. Physicians disliked salary arrangements.
C. Hospitals were unable to pay high enough salaries to physicians.
D. Physicians who took up practice in a corporate setting were castigated by the medical profession.
Answer: D

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