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    While preparing its 1991 financial statements, Dek Corp. discovered computational errors in its 1990 and 1989 depreciation expense. These errors resulted in overstatement of each year's income by $25,000, net of income taxes. The following amounts were reported in the previously issued financial statements:

    Dek's 1991 net income is correctly reported at $180,000. Which of the following amounts should be reported as prior period adjustments and net income in Dek's 1991 and 1990 comparative financial statements?

    A. Option B
    B. Option A
    C. Option C
    D. Option D
    Answer: C

    Recent years have brought minority-owned businesses in the United States unprecedented
    opportunities-as well as new and significant risks. Civil rights activists have long argued that one of the
    principal reasons why Blacks, Hispanics and the other minority groups have difficulty establishing
    themselves in business is that they lack access to the sizable orders and subcontracts that are generated
    by large companies. Now congress, in apparent agreement, has required by law that businesses awarded
    federal contracts of more than $500,000 do their best to find minority subcontractors and record their
    efforts to do so on forms field with the government. Indeed, some federal and local agencies have gone
    so far as to set specific percentage goals for apportioning parts of public works contracts to minority
    Corporate response appears to have been substantial. According to figures collected in 1977, the total of
    corporate contracts with minority business rose from $77 to $1.1 billion in 1977. The projected total of
    corporate contracts with minority business for the early 1980's is estimated to be over $3 billion per year
    with no letup anticipated in the next decade. Promising as it is for minority businesses, this increased
    patronage poses dangers for them, too. First, minority firms risk expanding too fast and overextending
    themselves financially, since most are small concerns and, unlike large businesses they often need to
    make substantial investments in new plants, staff, equipment, and the like in order to perform work
    subcontracted to them. If, thereafter, their subcontracts are for some reason reduced, such firms can face
    potentially crippling fixed expenses. The world of corporate purchasing can be frustrating for small
    entrepreneurs who get requests for elaborate formal estimates and bids. Both consume valuable time and
    resources and a small company's efforts must soon result in orders, or both the morale and the financial
    health of the business will suffer.
    A second risk is that White-owned companies may-seek to cash inon the increasing apportion-ments
    through formation of joint ventures with minority-owned concerns, of course, in many instances there are
    legitimate reasons for joint ventures; clearly, white and minority enterprises can team up to acquire
    business that neither could Third, a minority enterprise that secures the business of one large corporate
    customer often runs the danger of becoming and remaining dependent. Even in the best of circumstances,
    fierce competition from larger, more established companies makes it difficult for small concerns to
    broaden their customer bases; when such firms have nearly guaranteed orders from a single corporate
    benefactor, they may truly have to struggle against complacency arising from their current success.
    The passage suggests that the failure of a large business to have its bids for subcontracts results quickly
    in order might cause it to
    A. increase its spending with minority subcontractors
    B. experience frustrations but not serious financial ham
    C. revise its procedure for making bids for federal contracts and subcontracts
    D. have to record its efforts on forms filed with the government
    E. face potentially crippling fixed expenses
    Answer: B

    A. 管理の決定は、中上級の管理職の委員会によって行われます。
    B. 同社の収益性は業界標準よりも低い。
    C. 同社は急速に成長している業界ではありません。
    D. 経営回転率は非常に低いです。
    Answer: B

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    Additional Information

    Exam Code ACP-01101
    Exam Name Autodesk Certified Professional: AutoCAD for Drafting and Design
    Updated Jan 2, 2019
    Q & A 394 Q&As

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