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NEW QUESTION: 1

A. Option D
B. Option C
C. Option A
D. Option B
E. Option E
Answer: C,E

NEW QUESTION: 2
During 1994, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted
average method. Inventory balances under each method were as follows:

Orca's income tax rate is 30%.
Orca should report the cumulative effect of this accounting change as a(n):
A. Component of income from continuing operations.
B. Adjustment to beginning retained earnings.
C. Component of income after extraordinary items.
D. Extraordinary item.
Answer: B
Explanation:
Choice "a" is correct. The cumulative effect of a change in accounting principle is shown as an adjustment
to beginning retained earnings.
Choice "b" is incorrect. The cumulative effect of a change in accounting principle is now presented as a
separate category on the retained earnings statement and is not a component of net income.
Choice "c" is incorrect. Extraordinary items are unusual and infrequent in nature. Extraordinary items
have nothing to do with changes in accounting principle.
Choice "d" is incorrect. A change in accounting principle affects retained earnings, not the income
statement, under SFAS No. 154.

NEW QUESTION: 3
Universal Containers (UC) has hired a consulting firm to implement its new Service Cloud platform and
requires quick iterations and a speedy project completion. UC has requested frequently project updates for
check-ins and refinement.
Which methodology should the Consultant recommend given the requirements?
A. Waterfall
B. Force.com IDE
C. Agile
D. Kanban
Answer: C