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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.
What is the most likely effect of High Plains' revenue recognition policy on net income and inventory turnover?
A. Net income and inventory turnover are overstated.
B. Only inventory turnover is overstated.
C. Only net income is overstated.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Revenue should be recognized when earned and payment is assured. High Plains is recognizing revenue as orders are received. Since High Plains still has an obligation to deliver the goods, revenue is not yet earned. By recognizing revenue too soon, net income is overstated and ending inventory is understated.
Understated ending inventory would result in an overstated inventory turnover ratio. (Study Session 7, LOS
25.0

NEW QUESTION: 2
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 Microsoft Azure Active Directory (Azure AD) tenant named contoso.com.
You create an Azure Advanced Threat Protection (ATP) workspace named Workspace1.
The tenant contains the users shown in the following table.

You need to modify the configuration of the Azure ATP sensors.
Solution: You instruct User2 to modify the Azure ATP sensor configuration.
Does this meet the goal?
A. Yes
B. No
Answer: B

NEW QUESTION: 3
You're running an application on-premises due to its dependency on non-x86 hardware and want to use AWS for data backup. Your backup application is only able to write to POSIX-compatible block-based storage. You have 140TB of data and would like to mount it as a single folder on your file server Users must be able to access portions of this data while the backups are taking place. What backup solution would be most appropriate for this use case?
A. Configure your backup software to use S3 as the target for your data backups.
B. Use Storage Gateway and configure it to use Gateway Cached volumes.
C. Configure your backup software to use Glacier as the target for your data backups.
D. Use Storage Gateway and configure it to use Gateway Stored volumes.
Answer: D
Explanation:
Explanation
Data is hosted on the On-premise server as well. The requirement for 140TB is for file server On-Premise more to confuse and not in AWS. Just need a backup solution hence stored instead of cached volumes.