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NEW QUESTION: 1
How are material prior-period errors in financial statements accounted for when comparative statements are issued?
A. Prior-period financial statements are adjusted and reissued.
B. They are included in the determination of profit or loss for the current period.
C. They are corrected by restating comparative amounts for years when errors occurred.
D. They are charged or credited directly to the closing balance of current-year retained earnings.
Answer: C
Explanation:
All material prior-period errors must be corrected retrospectively in the first set of financial statements issued after their discovery. This may be done by restating the comparative amounts for the prior periods when the error occurred. If the error occurred prior to the first period presented, the opening balances for the first period presented are restated_ A material error is one that could, individually or collectively, affect the decisions of users of the financial statements. However, comparative information should be restated only if practicable.

NEW QUESTION: 2
What is a feeling of responsibility and respect that develops during an individual's formative years and is subconscious?
A. Candor
B. Moral honesty
C. Trustworthiness
D. Integrity
Answer: B

NEW QUESTION: 3
A large corporation has data centers geographically distributed across multiple continents. The company needs to securely transfer large amounts of data between the data center. The data transfer can be accomplished physically or electronically, but must prevent eavesdropping while the data is on transit. Which of the following represents the BEST cryptographic solution?
A. Using a courier to deliver symmetric VPN keys to each data center and transferring data in the VPN
B. Driving a van full of Micro SD cards from data center to data center to transfer data
C. Exchanging VPN keys between each data center via an SSL connection and transferring the data in the VPN
D. Using PKI to encrypt each file and transferring them via an Internet based FTP or cloud server
Answer: C
Explanation:
A virtual private network (VPN) is an encrypted communication tunnel that connects two systems over an untrusted network, such as the Internet. They provide security for both authentication and data transmission through a process called encapsulation. Secure Sockets Layer (SSL) can be used to exchange the VPN keys securely. SSL is used to establish secure TCP communication between two machines by encrypting the communication.