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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.
Which of the following is least likely to prevent earnings manipulation?
A. High Plains' bond covenants.
B. The independent audit.
C. SEC certification filed by High Plains' CEO and CFO.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Bond covenants can create an incentive to engage in earnings manipulation. If High Plains remains non- compliant, the bondholders can demand immediate repayment of the debt. (Study Session 7, LOS 25.c)
NEW QUESTION: 2
Your company has five main offices. Each office contains a data center.
You plan to deploy an Active Directory forest and an Exchange Server 2013 organization. Each office will be configured as a separate Active Directory site. User mailboxes will be hosted in each site.
You need to recommend an Exchange Server 2013 deployment strategy that meets the following requirements:
Provides redundancy for all mailbox databases
* Creates a temporary copy of outbound email messages
* Minimizes the number of servers deployed to the network
* Provides redundancy for client access by using Network Load Balancing (NLB)
* What should you recommend?
A. In each site, deploy one server that has both the Mailbox server role and the Client Access server role installed and another server that has the Client Access server role installed.
B. In each site, deploy two servers that have both the Mailbox server role and the Client Access server role installed.
C. In each site, deploy one server that has the Mailbox server role installed and two servers that have the Client Access server role installed.
D. In each site, deploy one server that has both the Mailbox server role and the Client Access server role installed.
Answer: C
Explanation:
WNLB can't be used on Exchange servers where mailbox DAGs are also being used because WNLB is incompatible with Windows failover clustering. If you're using an Exchange 2013 DAG and you want to use WNLB, you need to have the Client Access server role and the Mailbox server role running on separate servers.
References:
https://technet.microsoft.com/en-us/library/jj898588(v=exchg.150).aspx
NEW QUESTION: 3
コンテナデータベース（CDB）の1つには、5つのプラガブルデータベース（PDB）があります。
COMMON_USER_PREFIX is C##.
These commands executed successfully while connected as SYS to CDB$ROOT:
SQL> CREATE c##dba_admin IDENTIFIED BY orcl23;
SQL> CREATE ROLE c##role1 CONTAINER=ALL;
SQL> GRANT CREATE VIEW TO c##role1 CONTAINER=ALL;
SQL> GRANT c##role1 TO c##dba_admin CONTAINER=ALL;
SQL> GRANT c##role1 to system CONTAINER=ALL;
どれが本当ですか？ （3つ選択してください。）
A. The c##role1 role will always have the same privileges in all current and future PDBs.
B. SYSTEM is able to create views in any PDB as a result of being a DBA user.
C. The C##DBA_ADMIN user is able to create views in any PDB as a result of being granted the C##ROLE1 role.
D. The C##DBA_ADMIN user is a local user in CDB$ROOT.
E. SYSTEM is able to create views in any PDB as a result of being granted the C##ROLE1 role.
F. The C##DBA_ADMIN user is a local user in CDB$ROOT and PDB$SEED.
Answer: A,C,E