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NEW QUESTION: 1
High Plains Tubular Company is a leading manufacturer and distributor of quality steel products used in energy, industrial, and automotive applications worldwide.
The U.S. steel industry has been challenged by competition from foreign producers located primarily in Asia. All of the U.S. producers are experiencing declining margins as labor costs continue to increase. In addition, the U.S. steel mills arc technologically inferior to the foreign competitors. Also, the U.S. producers have significant environmental issues that remain unresolved.
High Plains is not immune from the problems of the industry and is currently in technical default under its bond covenants. The default is a result of the failure to meet certain coverage and turnover ratios. Earlier this year, High Plains and its bondholders entered into an agreement that will allow High Plains time to become compliant with the covenants. If High Plains is not in compliance by year end, the bondholders can immediately accelerate the maturity date of the bonds. In this case. High Plains would have no choice but to file bankruptcy.
High Plains follows U.S. GAAP. For the year ended 2008, High Plains received an unqualified opinion from its independent auditor. However, the auditor's opinion included an explanatory paragraph about High Plains' inability to continue as a going concern in the event its bonds remain in technical default.
At the end of 2008, High Plains' Chief Executive Officer (CEO) and Chief Financial Officer (CFO) filed the necessary certifications required by the Securities and Exchange Commission (SEC).
To get a better understanding of High Plains' financial situation, it is helpful to review High Plains' cash flow statement found in Exhibit 1 and selected financial footnotes found in Exhibit 2.

Exhibit 2: Selected Financial Footnotes
1. During 2008, High Plains' sales increased 27% over 2007. Its sales growth continues to significantly exceed the industry average. Sales are recognized when a firm order is received from the customer, the sales price is fixed and determinable, and collectability is reasonably assured.
2. The cost of inventories is determined using the last-in, first-out (LIFO) method. Had the first-in, first-out method been used, inventories would have been $152 million and $143 million higher as of December
31,2008 and 2007, respectively.
3. Effective January 1, 2008, High Plains changed its depreciation method from the double-declining balance method to the straight-line method in order to be more comparable with the accounting practices of other firms within its industry. The change was not retroactively applied and only affects assets that were acquired on or after January 1,2008.
4. High Plains made the following discretionary expenditures for maintenance and repair of plant and equipment and for advertising and marketing:

5. During the fiscal year ended December 31, 2008, High Plains sold $50 million of its accounts receivable, with recourse, to an unrelated entity. All of the receivables were still outstanding at year end.
6. High Plains conducts some of its operations in facilities leased under noncancelable capital leases.
Certain leases include renewal options with provisions for increased lease payments during the renewal term.
7. High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively.
Which of the following statements about evaluating High Plains financial reporting quality is least accurate?
A. Higher Plains may have manipulated earnings due to the risk of
B. Because of the estimates involved, a higher weighting should be assigned to the accrual component of High Plains' earnings as compared to the cash component.
C. High Plains' extreme revenue growth will likely revert back to normal levels over time.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
It appears thai High Plains manipulated its earnings upward in 2008 to avoid default under its bond covenants. However, the higher earnings are lower quality as measured by the cash flow accrual ratio.
Because of the estimates involved, a lower weighting should be assigned to the accrual component of High Plains' earnings. Extreme earnings (including revenues) tend to revert to normal levels over time (mean reversion). (Study Session 7, LOS 25.b,e)

NEW QUESTION: 2
You are a Dynamics 365 for Finance and Operations system administrator.
You have 50 identified purchase order numbers that are not used in the system and are not being recycled. Why they are missing is unknown. Purchasing operations is currently operating around the clock and no downtime can occur.
You need to use the missing numbers in the system.
What should you do?
A. Run the Number sequence wizard for the purchase order number sequence.
B. Change the number sequence to manual, then manually assign the number sequences to the new purchase orders.
C. Change the number sequence to non-continuous and create the new purchase orders.
D. Change the number sequence to continuous and create the new purchase orders.
E. Run Automatic cleanup of number sequence and create the new purchase orders.
Answer: E

NEW QUESTION: 3
솔루션 설계자는 stonng 및 엔지니어링 도면을 보는 데 사용되는 새로운 웹 애플리케이션을위한 스토리지 아키텍처를 설계하고 있습니다. 모든 애플리케이션 구성 요소는 AWS 인프라에 배포됩니다.
사용자가 엔지니어링 도면이로드 될 때까지 기다리는 시간을 최소화하려면 응용 프로그램 디자인에서 캐싱을 지원해야 합니다. 애플리케이션은 페타 바이트의 데이터를 저장할 수 있어야 합니다. 솔루션 아키텍트는 어떤 스토리지 및 캐싱 조합을 사용해야 합니까?
A. Amazon CloudFront가 포함 된 Amazon Elastic Block Store (Amazon EBS) 볼륨
B. Amazon CloudFront가 포함 된 Amazon S3
C. Amazon ElastiCache가 포함 된 AWS Storage Gateway
D. Amazon ElastiCache가 포함 된 Amazon S3 Glacier
Answer: B
Explanation:
CloudFront for caching and S3 as the origin. Glacier is used for archiving which is not the case for this scenario.

NEW QUESTION: 4
Nach dem Verkauf eines Geschäftsbereichs werden die Mitarbeiter in eine neue Organisation versetzt, behalten jedoch den Zugriff auf IT-Geräte des vorherigen Arbeitgebers. Ein IS-Prüfer hat beiden Organisationen empfohlen, einer akzeptablen Verwendungsrichtlinie für das Gerät zuzustimmen und diese zu dokumentieren. Welche Art der Kontrolle wurde empfohlen?
A. Korrekturkontrolle
B. Vorbeugende Kontrolle
C. Detektivkontrolle
D. Richtlinienkontrolle
Answer: C

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