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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 A represents possible clarifications of these
transactions as: a change in accounting principle, a change in accounting estimate, a correction of an
error in previously presented financial statements, or neither an accounting change nor an accounting
error.
Item to Be Answered
Quo changed from FIFO to average cost to account for its raw materials and work in process inventories.
List A (Select one)
A. Change in accounting estimate.
B. Change in accounting principal.
C. Neither an accounting change nor an accounting error.
D. Correction of an error in previously presented financial statements.
Answer: B
Explanation:
Choice "a" is correct. Change in inventory pricing method from FIFO to average cost is a change in
accounting principle.
NEW QUESTION: 2
Which of the following can be used as an input for Define Scope?
A. Project scope statement
B. Product analysis
C. Project charter
D. Scope baseline
Answer: C
NEW QUESTION: 3
TFTP is based on the TCP protocol.
A. False
B. True
Answer: A