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  • Exam Code: AD0-E702
  • Exam Name: Adobe Certified Professional Magento Commerce Developer
  • Version: V12.35
  • Q & A: 78 Questions and Answers

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NEW QUESTION: 1
At December 31, 1996, Davis Inc. awaits judgment on a lawsuit for a competitor's infringement of Davis' patent. Legal counsel believes it is probable that Davis will win the suit and indicated the most likely award together with a range of possible awards. How should the lawsuit be reported in Davis' 1996 financial statements?
A. By accrual for the most likely award.
B. Neither in note disclosure nor by accrual.
C. By accrual for the lowest amount of the range of possible awards.
D. None of these answers.
E. In note disclosure only.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
A loss contingency is recognized but not a gain contingency following the principle of conservatism. A gain contingency is only disclosed in the notes until the settlement is realized.

NEW QUESTION: 2
There are four methods to generate a business need in an organization. Which approach would an organization use when there's recognized competition in the marketplace?
A. From middle management
B. From the top down
C. From external drivers
D. From the bottom up
Answer: C
Explanation:
Explanation
From external drivers is used when there's recognized competition in the marketplace.
Answer D is incorrect. From the top down is defined as the need to achieve a strategic goal.
Answer A is incorrect. From the bottom up is described as a problem with the current state of a process,
function, or system.
Answer C is incorrect. From middle management is described as a manager needs additional information to
make sound decisions or must perform additional functions to meet business objectives.

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