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-- Exhibit-

-- Exhibit --
Refer to the exhibit. A Steelhead administrator has recently decided to
configure data store synchronization between 2 Steelhead appliances on his data center.
Afterapplying the configurations, he noticed that it is not working. According to the logs
provided, what would you suggest would fix the problem?
A. Disable optimization.
B. Change the auxiliary ip address on one of the Steelhead appliances.
C. Configure one Steelhead appliance as master.
D. Restart services.
E. Configure one Steelhead appliance as backup.
Answer: E

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
As a result of a production breakthrough, Quo determined that manufacturing equipment previously
depreciated over 15 years should be depreciated over 20 years.
List B (Select one)
A. Cumulative effect approach.
B. Retroactive or retrospective restatement approach.
C. Prospective approach.
Answer: C
Choice "C" is correct. This affects only the prospective (current and subsequent) periods - not prior
periods, not retained earnings.

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