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NEW QUESTION: 1
Which of the following documentation should be referenced FIRST when deciding how long to retain backup data?
A. Offsite storage contract
B. Standards compliance
C. Industry best practices
D. Corporate compliance
Answer: D
NEW QUESTION: 2
A. 127.0.0.0/8
B. 10.0.0.0/8
C. 192.168.0.0/16
D. 169.255.0.0/16
E. 172.16.0.0/12
Answer: B,C,E
NEW QUESTION: 3
An entity with total aside t, of US $100,000,000 and profit of US purchases staplers with an estimated life of 10 years for US $1,000. In connection with the purchase, the company debits miscellaneous expense. This scenario is most closely associated with which of the following cone opts or principles?
A. Reliability and comparability.
B. Relevance and neutrality.
C. Materiality and going concern.
D. Materiality and the balance between cost and benefit.
Answer: D
Explanation:
In principle, wasting assets should be capitalized and depreciated. However, the effect on the financial statements of expensing rather than capitalizing and depreciating the staplers is clearly not material given that they cost US $1,000 and the enterprise has total assets of US $1,000. The choice of treatment is not likely to influence the decisions of financial statement users. The balance between benefit and cost is a pervasive constraint, not a qualitative characteristic. The benefits should exceed the cost of information.
Specifically, the cost of producing the information about depreciation expense over 10 years for the staplers probably is higher than the benefits of the information for decision making. Thus, the expedient procedure of expensing the US $1,000 should be followed.