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NEW QUESTION: 1
Entity X effects self-insurance against loss from fire by appropriating an amount of retained earnings each year equal to the amount that would otherwise be paid out as fire insurance premiums. The procedure used by entity X:
A. Prohibited for external reporting purposes.
B. Acceptable provided that fire losses are charged against the appropriation.
C. Acceptable if the amount is shown outside the equity section of the balance sheet.
D. Acceptable provided that fire losses are not charged against the appropriation.
Answer: D
Explanation:
Accrual of an expense prior to the occurrence of the event for which an entity is self insured should not be permitted. This rule holds because the fair value of the property diminishes only if the event actually occurs. But an appropriation of retained earnings is acceptable to disclose the self-insurance policy if when a fire loss occurs, the entry appropriating retained earnings is reversed and the loss is charged against income of period of loss and not against retained earnings.

NEW QUESTION: 2
The project is delayed and according to the customer contract, Nokia is due to pay a penalty. What is the recommended approach?
A. Claim strategy and understanding of contractual obligations.
B. Accept the customer penalty and apply for compensation from an insurance company.
C. Contract change process.
D. Renegotiate the contract.
Answer: A

NEW QUESTION: 3
You need to configure the virtual directories to meet the technical requirements.
How should you complete the command? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation: