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Which statement is correct about ColorLok?
A. It contributes to the environmental protection by superior de-inking and longer printer life.
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D. Due to superior simplex printing, it reduces the total use of paper
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Explanation:
Reference: http://www.hp.com/sbso/product/supplies/paper_colorlok.html
NEW QUESTION: 2
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List B represents the general accounting treatment
required for these transactions. These treatments are:
. Cumulative effect approach - Include the cumulative effect of the adjustment resulting from the
accounting change or error correction in the 1993 financial statements, and do not restate the 1992
financial statements.
. Retroactive or retrospective restatement approach - Restate the 1992 financial statements and adjust
1 992 beginning retained earnings if the error or change affects a period prior to 1992.
. Prospective approach - Report 1993 and future financial statements on the new basis but do not restate
1 992 financial statements.
Item to Be Answered
Quo manufactures heavy equipment to customer specifications on a contract basis. On the basis that it is
preferable, accounting for these long-term contracts was switched from the completed-contract method to
the percentage-of-completion method.
List B (Select one)
A. Retroactive or retrospective restatement approach.
B. Prospective approach.
C. Cumulative effect approach.
Answer: A
Explanation:
Choice "B" is correct. Changes in accounting principle are handled "retrospectively." Beginning retained
earnings of the earliest year presented is adjusted for the cumulative effect of the change and all prior
year financial statements are restated.
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