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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?
A. The fault reports in this category do not contain sufficient information to investigate the problem.
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B. The fault reports in this category have sufficient information to investigate the problem, however IBM recommends to collect new data for further investigation.
C. The fault reports in this category have sufficient information to match their crash stacks against previously reported crashes.
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
amount of inventory loss should be reported in Cox's quarterly income statement for the three months
ended June 30, 1989?
A. $360,000
B. $90,000
C. $180,000
D. $0
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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A. Option A
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Answer: A
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