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NEW QUESTION: 1
The network administrator of 2001:DB8:FEED::/64 wants to embed an RP for the network and the RP's
address is 2001 :DB8:FEED::7. Which of the following multicast address ranges would suit this purpose?
(The exhibit of Group-to-RP Mapping is just for your reference)
A. FF7x:730:2001:DB8:FEED::/96(x is scope)
B. FF7x:730:2001:DB8:FEED::/80(x is scope)
C. FF7x:740:2001:DB8:FEED::/96(x is scope)
D. FF7x:740:2001:DB8:FEED::/80(x is scope)
Answer: C
NEW QUESTION: 2
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. Component of income from continuing operations, without separate disclosure.
C. Retrospective adjustment on the retained earnings statement, with separate disclosure.
D. Component of income after continuing operations, with separate disclosure.
Answer: C
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: 3
A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?
A. Outsource the production of products with low sales volumes to reallocate capacity.
B. Consolidate production within the trading bloc to reduce tariffs paid.
C. Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.
D. Consolidate production outside the trading bloc to reduce total costs.
Answer: C
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