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NEW QUESTION: 1
Which one of the following will result in an accruable expense for an accrual-basis taxpayer?
A. A repair completed prior to year end and paid upon completion.
B. An invoice dated prior to year end but the repair completed after year end.
C. A signed contract for repair work to be done and the work is to be completed at a later date.
D. A repair completed prior to year end but not invoiced.
Answer: D
Explanation:
Explanation
RULE: An accruable expense is one is which the services have been received/performed but have not been paid for by the end of the reporting period.
Choice "b" is correct. The facts indicate that a repair was completed prior to year end but not yet invoiced. If it has not yet been invoiced, it is assumed that it has also not yet been paid for. Therefore, this is a situation in which the repair expense would be accrued at year end. Services have been performed, but they have not been paid for, as they have not even been invoiced yet.
Choice "a" is incorrect. If the repair was completed after year end, then the expense is not accruable, as the benefit of the services hasn't been received as of year end. The fact that the repair was invoiced prior to year end does not impact the situation.
Choice "c" is incorrect. If a repair was completed and paid for prior to year end, no accrual is appropriate. On the accrual basis, the expense is taken in the year the repair is completed and the benefit is received. In this case, the account payable was also paid in the same year, but this has no effect on the expense.
Choice "d" is incorrect. The facts indicate that the work is to be completed at a date later than year end. Therefore, the expense is not accruable at year end, as the benefit of the repair hasn't been received as of year end. It is reasonable that a signed contract for the repair work exists, but this has no effect on the accrual.

NEW QUESTION: 2
Tobin Yoakam, CFA, is analyzing the financial performance of Konker Industries, a U.S. company which is publicly traded under the ticker KONK. Yoakam is particularly concerned about the quality of Konker's financial statements and its choices of accounting methodologies.
Below is a summary of Konker's financial statements prepared by Yoakam.

Konker has an operating lease for several of its large machining tools. The lease term expires in five years, and the annual lease payments are $2 million. The applicable interest rate on the operating lease is 9%.
Yoakam believes that the operating lease should be capitalized and treated as a finance lease. For purposes of adjusting the financial statements, Yoakam believes that the machining tools should be depreciated using straight-line depreciation with a salvage value of $3 million.
At the beginning of 20X8, Konker formed a qualified special purposes entity (QSPE) and sold a portion of its accounts receivables to the QSPE. The total amount of accounts receivables sold to the QSPE was
$13.5 million. Yoakam has noted in his research that the Financial Accounting Standards Board (FASB) is considering the elimination of qualified special purposes entities.
Konker has three major operating divisions: Konker Industrial, Konker Defense, and Konker Capital.
Yoakam has computed the EBIT margin for each division over the last three years as well as the ratio of the percentage of total capital expenditures to the percentage of total assets for each division.

Since Yoakam is concerned about the quality of Konker's earnings, he decides to analyze the accrual ratios using the balance sheet approach. The table below contains the last three years of accrual ratios for Konker and the industry average.
Regarding the three operating divisions of Konker, Yoakam should be most concerned that:
A. Konker is growing the Industrial division over time.
B. the operating ROA of the Capital division has fallen over the last year.
C. the ratio of the Capex percent change to the asset percentage is significantly less than one for the Defense division.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
The fact that Konker is growing the Industrial division most rapidly (highest capex percent to asset percent ratio) is a likely cause for concern and further investigation, since this division has the lowest operating return on assets. The decrease in the operating ROA for the Capital division is not particularly troublesome as it mirrors the pattern for the other divisisions and likely just reflects year-to-year variation in profitability.
The fact that the percent of capex for the Defense division is less than its percent of total assets is not a primary cause for concern since that division has a lower operating ROA, and growth in capital assets likely follows contract awards in the defense industry, rather than drives business. Also, the apparent overinvestment in the Industrial division will decrease the capex percent for other divisions, other things equal. (Study Session 7, LOS 26.b)

NEW QUESTION: 3

A. Option D
B. Option B
C. Option A
D. Option E
E. Option C
Answer: A,D
Explanation:
Explanation
Refer AWS documentation - EC2 API & IAM Testing Policies
DryRun
Checks whether you have the required permissions for the action, without actually making the request. If you have the required permissions, the request returns DryRunOperation; otherwise, it returns UnauthorizedOperation.
With the IAM policy simulator, you can test and troubleshoot IAM and resource-based policies in the following ways:
* Test policies that are attached to IAM users, groups, or roles in your AWS account. If more than one policy is attached to the user, group, or role, you can test all the policies, or select individual policies to test. You can test which actions are allowed or denied by the selected policies for specific resources.
* Test policies that are attached to AWS resources, such as Amazon S3 buckets, Amazon SQS queues, Amazon SNS topics, or Amazon Glacier vaults.
* If your AWS account is a member of an AWS Organization, then you can test the impact of organization control policies on your IAM policies and resource policies.
* Test new policies that are not yet attached to a user, group, or role by typing or copying them into the simulator. These are used only in the simulation and are not saved. Note: you cannot type or copy a resource-based policy into the simulator. To use a resource-based policy in the simulator, you must include the resource in the simulation and select the check box to include that resource's policy in the simulation.
* Test the policies with selected services, actions, and resources. For example, you can test to ensure that your policy allows an entity to perform the CreateBucket, and DeleteBucket actions in the Amazon S3 service on a specific bucket.
* Simulate real-world scenarios by providing context keys, such as an IP address or date, that are included in Condition elements in the policies being tested.
* Identify which specific statement in a policy results in allowing or denying access to a particular resource or action.

NEW QUESTION: 4
View the Exhibit and examine the structure of the customers table.

Using the customers table, you need to generate a report that shows the average credit limit for customers in Washington and NEW YORK.
Which SQL statement would produce the required result?

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