Which three statements are correct about RIP version 2 (Choo

20 IAS 2 Inventories defines the extent to which overheads are included in the cost of inventories of finished goods.

Which of the following statements about the IAS 2 requirements in this area are correct?

1 Finished goods inventories may be valued on the basis of labour and materials cost only, without including overheads.

2 Carriage inwards, but not carriage outwards, should be included in overheads when valuing inventories of finished goods.

3 Factory management costs should be included in fixed overheads allocated to inventories of finished goods.

A All three statements are correct

B 1 and 2 only

C 1 and 3 only

D 2 and 3 only

22 Which of the following statements about limited liability companies’ accounting is/are correct?

1 A revaluation reserve arises when a non-current asset is sold at a profit.

2 The authorised share capital of a company is the maximum nominal value of shares and loan notes the company

may issue.

3 The notes to the financial statements must contain details of all adjusting events as defined in IAS10 Events after

the balance sheet date.

A All three statements

B 1 and 2 only

C 2 and 3 only

D None of the statements

15 Which of the following statements about intangible assets are correct?

1 If certain criteria are met, research expenditure must be recognised as an intangible asset.

2 Goodwill may not be revalued upwards.

3 Internally generated goodwill should not be capitalised.

A 2 and 3 only

B 1 and 3 only

C 1 and 2 only

D All three statements are correct

A. Discontiguous subnets are not allowed.

B. Variable length subnet masks are allowed.

C. RIP v1 is a classless routing protocol.

D. IGRP supports classless routing within the same autonomous system.

E. RIP v2 supports classless routing.

A. SHA-1

B. MD5 authentication

C. version 1 messages

D. version 2 messages

E. plain-text authentication

19 Which of the following statements about intangible assets in company financial statements are correct according

to international accounting standards?

1 Internally generated goodwill should not be capitalised.

2 Purchased goodwill should normally be amortised through the income statement.

3 Development expenditure must be capitalised if certain conditions are met.

A 1 and 3 only

B 1 and 2 only

C 2 and 3 only

D All three statements are correct

A. one-rate rate limiters

B. two-rate rate limiters

C. two-rate rate limiters is the default

D. one-rate rate limiters is the default

E. there is no default it must be configured

18 Which of the following statements about accounting ratios and their interpretation are correct?

1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.

2 If a company has a high price earnings ratio, this will often indicate that the market expects its profits to rise.

3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1.

A 2 and 3 only

B 1 and 3 only

C 1 and 2 only

D All three statements are correct

A. IS - IS is more CPU - intensive than is OSPF

B. For greater fine tuning there are more IS - IS timers

C. IS - IS LSP con tains TLV fields and OSPF LSU contains the LSAs

D. New additions to the protocol are easily implemented in OSPF but not with IS - IS

E. OSPF has more area types than does IS - IS

A. There are three IGMP modes: dense mode, sparse mode, and sparse - dense mode

B. IGMP is used to register individual hosts with a multicast group

C. IGMP version 3 enables a multicast receiving host to specify to the router which sources it should forward traffic from

D. IGMP messages a re IP datagrams with a protocol value of 2, destination address of 224.0.0.2, and a TTL value of 1

E. IGMP is a multicast routing protocol that makes packet - forwarding decisions independent of other routing protocols such as EIGRP

F. IGMP snooping ru ns on Layer 3 routers