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In the Fault Reports database, a fault report is in the Possible Problem (possibly actionable) category of the View By Disposition view. What is the description of this category?
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D. The fault reports in this category have sufficient information to investigate the problem, but are not likely to result in action that the administrator should take.
Answer: D
NEW QUESTION: 2
An inventory loss from a permanent market decline of $360,000 occurred in May 1989. Cox Co.
appropriately recorded this loss in May 1989 after its March 31, 1989 quarterly report was issued. What
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ended June 30, 1989?
A. $360,000
B. $0
C. $180,000
D. $90,000
Answer: A
Explanation:
Choice "d" is correct. $360,000 inventory loss reported for the quarter ended 6-30-89.
Rule: Inventory losses from "permanent market declines" are recognized in the interim period, incurred
and later, if they "turn-around," are recognized as gains in a subsequent interim period only to the extent
of previously reported losses.
Rule: "Temporary" market declines need not be recognized at interim when a "turn-around" can
reasonably be expected to occur before the end of the fiscal year.
Facts: This $360,000 inventory decline is permanent and the entire loss would be recognized in the
quarter interim period incurred (6-30-89).
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