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NEW QUESTION: 1
On December 31, 20X2, the Board of Directors of Maxy Manufacturing, Inc. committed to a plan to
discontinue the operations of its Alpha division. Maxy estimated that Alpha's 20X3 operating loss would
be $500,000 and that the fair value of Alpha's facilities was $300,000 less than their carrying amounts.
Alpha's 20X2 operating loss was $1,400,000, and the division was actually sold for $400,000 less than its
carrying amount in 20X3. Maxy's effective tax rate is 30%.
In its 20X2 income statement, what amount should Maxy report as loss from discontinued operations?
A. $980,000
B. $1,400,000
C. $1,700,000
D. $1,190,000
Answer: D
Explanation:
Choice "b" is correct. Since the fair value of Alpha's facilities was $300,000 less than its carrying value,
there has been an impairment loss, and that loss should be recognized in 20X2. That $300,000
impairment loss plus the $1,400,000 20X2 operating loss would be recognized in 20X2 net of tax. The
total loss would be $1,700,000 * 70% (100% - 30%) or $1,190,000. Choice "a" is incorrect. It includes the
2 0X2 operating loss of $1,400,000 but not the $300,000 impairment loss but does report the 20X2
operating loss net of tax. Choice "c" is incorrect. It includes the 20X2 operating loss of $1,400,000, but not
the $300,000 impairment loss, and reports the 20X2 operating loss gross of tax and not net of tax. Choice
"d" is incorrect. It reports the 20X2 loss from discontinued operations gross of tax and not net of tax.
NEW QUESTION: 2
In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's
assertion of:
A. Understandability and classification.
B. Completeness.
C. Existence.
D. Valuation and allocation.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. When testing liabilities, an auditor generally is concerned about understatement (as
opposed to overstatement, for assets). Therefore, in auditing accounts payable, an auditor's procedures
most likely would focus primarily on management's assertion of completeness (if accounts payable is not
complete it would be understated).
Choice "A" is incorrect. The assertion of existence is the primary focus of the auditor when auditing an
asset account, not accounts payable.
Choice "B" is incorrect. The understandability and classification assertion is not the primary focus in the
audit of accounts payable.
Choice "D" is incorrect. The assertion of valuation and allocation is not the main focus with respect to
accounts payable. Good external evidence generally is available to support the amount, and allocation
over more than one period generally is not required.
NEW QUESTION: 3
Note: This question is part of a series of questions that present the same scenario. Each question in the series contains a unique solution that might meet the stated goals. Some question sets might have more than one correct solution, while others might not have a correct solution.
After you answer a question in this section, you will NOT be able to return to it. As a result, these questions will not appear in the review screen.
You have a laptop named Computer1 that runs Windows 10.
When in range, Computer1 connects automatically to a Wi-Fi network named Wireless1.
You need to prevent Computer1 from automatically connecting to Wireless1.
Solution: From the Settings app, you modify the properties of the Wireless1 known Wi-Fi network.
Does this meet the goal?
A. Yes
B. No
Answer: A
Explanation:
Explanation
Removing Wireless1 as a known Wi-Fi network on Computer1 will prevent it from automatically connecting.
Note: You can also type netsh wlan show profiles in the Command Prompt to manage and delete wireless network profiles.
References:
https://kb.netgear.com/29889/How-to-delete-a-wireless-network-profile-in-Windows-10
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