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NEW QUESTION: 1
What can be used for bank-internal risk control, as well as for regulatory external control?
A. Risk Analysis
B. Data modeling
C. Administrators
D. Active observers
Answer: A

NEW QUESTION: 2

Select and Place:

Answer:
Explanation:

NEW QUESTION: 3
Is it possible to see the sales revenue for a month in your financial report, even if an invoice has not been sent to the customer?
A. No, because this is not SOX compliant.
B. Yes, because F&C accrue or defer the revenue from the sale.
C. Yes, because the invoice is generated automatically.
D. No, because sales are always recorded when the customer invoice is sent.
Answer: B

NEW QUESTION: 4
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 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 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. Switching from the completed-contract method of accounting to the percentage-of
completion method is a "change in accounting principle."