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NEW QUESTION: 1
At December 31, Year 1, an entity had the following equity accounts:
Each of the 40,000 ordinary shares outstanding was issued at a price of US $26. On January 2, Year 2, 2,000 shares were reacquired for US $30 per share. The cost method is used in accounting for these treasury shares. Which of the following correctly describes the effect of the acquisition of the treasury shares?
A. The retained earnings account balance is reduced by US $8,000.
B. Share premium from issuance of ordinary shares is reduced by US $32,000.
C. Total equity is reduced by US $60,000.
D. Ordinary shares is reduced by US $20,000.
Answer: C
Explanation:
Using the cost method, the journal entry to record the acquisition of the treasury shares includes a debit to treasury shares for US $60,000. The balance of the treasury shares account is classified as a contra equity item. Thus, the acquisition of the treasury shares reduces total equity by US $600002.000 shares x $30).
NEW QUESTION: 2
Which of the following is a function of an IS steering committee?
A. Ensuring a separation of duties within the information's processing environment
B. Approving and monitoring major projects, the status of IS plans and budgets
C. Monitoring vendor-controlled change control and testing
D. Liaising between the IS department and the end users
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The IS steering committee typically serves as a general review board for major IS projects and should not become involved in routine operations; therefore, one of its functions is to approve and monitor major projects, the status of IS plans and budgets. Vendor change control is an outsourcing issue and should be monitored by IS management. Ensuring a separation of duties within the information's processing environment is an IS management responsibility. Liaising between the IS department and the end users is a function of the individual parties and not a committee.
NEW QUESTION: 3
Which ONE of the following is the BEST way to take advantage of the different mindsets of testers and
developers?
A. Have all developers undergo ISTQB training.
B. Bring the two mindsets together.
C. Insist on independent testing at all stages in the lifecycle.
D. Keep developers and testers in separate teams.
Answer: B