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NEW QUESTION 43
After a recent earthquake in a nearby city the board of directors of a company has requested a review of the company s disaster recovery plan Which of the following would be classified as a weakness in the company's disaster recovery plan?
- A. Management has decided not to maintain a hot site because it was determined that the costs outweigh the benefits.
- B. The details of the disaster recovery plan stipulate that internal audit should review the plan every other year rather than annually.
- C. A cold site with backup data and documents is maintained on the basement level of the company s headquarters.
- D. Members of the company's disaster recovery team maintain current copies of the disaster recovery plan m their homes.
Answer: C
NEW QUESTION 44
A building materials retailer uses a LIFO method of valuing its inventory. The company has just introduced a new product. The following is the activity for the first month of this new product.
* Purchase of 3,000 units on the 2nd of the month at $5.00.
* Purchase of 6,000 units on the 12th of the month at $4.80.
* Purchase of 2,000 units on the 31st of the month at $5 60.
* Sales of the product were 4,000 units on the 20th of the month.
Using the periodic method, the ending value of the inventory would be
- A. $35, 800.
- B. $35,200.
- C. $35,000.
- D. $34,200.
Answer: B
NEW QUESTION 45
The amount of the loss on the impairment of an intangible asset equals the
- A. difference between the carrying amount and the fair value
- B. difference between the fair value and the expected future net cash flows
- C. expected future net cash flows
- D. carrying amount and the expected future cash flows
Answer: A
NEW QUESTION 46
A company has the following accounts included in its trial balance as of December 31
What amount of equity will be reported on me company's balance sheet as of December 31?
- A. $599,000.
- B. $92,500.
- C. $626,500
- D. $657,500
Answer: B
NEW QUESTION 47
Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under their Influence or control Decisions Intended to influence ROI are often from a short-term perspective and may conflict with the long-term objectives of the organization. This lack of goal congruence can be minimized by
- A. providing the manager with limitations on what can be used to influence the factors involved in computing the ROI.
- B. using the two components of ROI (investment turnover and return on sales) instead of only ROI.
- C. requiring multiple-year measures of ROI and evaluating these results along with the residual incomes from the same periods.
- D. allowing different minimum returns for different investments.
Answer: C
NEW QUESTION 48
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