Question 1

According to U.S. GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

Accepted Answer

U.S. GAAP does not require general corpo

Question 2

Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory.The amount of gross profit for the first quarter is:

Accepted Answer

A)  $83,000 
B)  $87,000 
C)  $90,000 
D)  $221,000 
E)  $250,000 
A)  $83,000 
B)  $87,000 
C)  $90,000 
D)  $221,000 
E)  $250,000

Question 3

How should revenues be recognized in interim periods?

Accepted Answer

A)  In the same way as they are recognized on an annual basis. 
B)  On the cash basis. 
C)  On an annualized basis. 
D)  On a seasonal basis. 
E)  There are no revenues recognized in interim periods. 
A)  In the same way as they are recognized on an annual basis. 
B)  On the cash basis. 
C)  On an annualized basis. 
D)  On a seasonal basis. 
E)  There are no revenues recognized in interim periods.

Question 4

Schilling, Inc. has three operating segments with the following information:   According to the revenue test, which segment(s) are separately reportable?

Accepted Answer

A)  Silver only. 
B)  Crystal and Silver. 
C)  China and Crystal. 
D)  China and Silver. 
E)  China, Crystal, and Silver. 
A)  Silver only. 
B)  Crystal and Silver. 
C)  China and Crystal. 
D)  China and Silver. 
E)  China, Crystal, and Silver.

Question 5

Coulanger Corp. identified four operating segments: A, B, C, and D. Segment A met the revenue test for identifying reportable segments while Segment C met the revenue test, profit or loss test, and asset test. Segment B and Segment D did not meet any of these tests. Which of these segments must be disclosed separately?

Accepted Answer

A)  Option A. 
B)  Option B. 
C)  Option C. 
D)  Option D. 
E)  Option E. 
A)  Option A. 
B)  Option B. 
C)  Option C. 
D)  Option D. 
E)  Option E.

Question 6

Elektronix, Inc. has three operating segments with the following information:   Which of the segments are separately reportable?

Accepted Answer

A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. 
A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s.

Question 7

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Accepted Answer

For operating segments deemed reportable

Question 8

How should discontinued operations be reported in an interim report?

Accepted Answer

A)  Include in the gain or loss section of the interim report and include the tax with all other income tax. 
B)  Include as discontinued operations, net of tax, if the component of the business is classified as held-for-sale or is discontinued in the interim period. 
C)  Include net of the tax estimated specifically for the discontinued operations. 
D)  Include with other operations in the interim period but include the amount net of its specific tax. 
E)  Include with other operations in interim periods until the annual financial statement is prepared. 
A)  Include in the gain or loss section of the interim report and include the tax with all other income tax. 
B)  Include as discontinued operations, net of tax, if the component of the business is classified as held-for-sale or is discontinued in the interim period. 
C)  Include net of the tax estimated specifically for the discontinued operations. 
D)  Include with other operations in the interim period but include the amount net of its specific tax. 
E)  Include with other operations in interim periods until the annual financial statement is prepared.

Question 9

On February 23, 2021, Cleveland, Inc. paid property taxes of $300,000 for the calendar year 2021.Prepare the journal entry for the payment of property taxes on February 23, 2021.

Accepted Answer

The answer of On February 23, 2021, Cleveland, Inc. paid...

Question 10

Which of the following must be disclosed by a geographic segment according U.S. GAAP?

Accepted Answer

A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers. 
A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers.

Question 11

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses:   According to the profit or loss test, which segments would require disaggregation?

Accepted Answer

A)  A, B, D, and E. 
B)  A, B, C, and E. 
C)  A, D, and E. 
D)  A and D. 
E)  A only. 
A)  A, B, D, and E. 
B)  A, B, C, and E. 
C)  A, D, and E. 
D)  A and D. 
E)  A only.

Question 12

For companies that provide quarterly reports, how is the fourth quarter reported?

Accepted Answer

A)  Every company that reports for the first three quarters must also publish a fourth-quarter report. 
B)  A fourth-quarter report is not required. 
C)  Companies must publish a fourth-quarter report if there are significant changes from the third quarter. 
D)  The SEC requires selected quarterly financial data to be reported separately as a fourth-quarter report. 
E)  When fourth-quarter financial statements are provided, special accounting items of that quarter must also be separately disclosed in the annual financial statements. 
A)  Every company that reports for the first three quarters must also publish a fourth-quarter report. 
B)  A fourth-quarter report is not required. 
C)  Companies must publish a fourth-quarter report if there are significant changes from the third quarter. 
D)  The SEC requires selected quarterly financial data to be reported separately as a fourth-quarter report. 
E)  When fourth-quarter financial statements are provided, special accounting items of that quarter must also be separately disclosed in the annual financial statements.

Question 13

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands):   What is the total amount of revenues in applying the revenue test?

Accepted Answer

A)  $794. 
B)  $808. 
C)  $892. 
D)  $906. 
E)  $934. 
A)  $794. 
B)  $808. 
C)  $892. 
D)  $906. 
E)  $934.

Question 14

For each of the following situations, select the best answer concerning segment disclosures of reportable segments.
A) Required to be disclosed by an operating segment, but not a geographical segment.
B) Required to be disclosed by a geographical segment, but not an operating segment.
C) Required to be disclosed by both an operating segment and a geographical segment.
D) Not required to be disclosed by either an operating segment or a geographical segment.Factors used to identify segments.Revenues from external customers.Types of products and services from which each segment derives its revenues.Names of major customers.Revenues from transactions with other segments.Interest revenue.Long-lived assets.Discontinued operations, when applicable.Income tax expense or benefit.Revenues for the domestic country.Cash flow information

Accepted Answer

(1) A; (2) C; (3) A;

Question 15

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report?1) Annual major repairs.2) Advertising expense.3) Bonus expense, if estimable.4) Quantity discounts based on annual sales.

Accepted Answer

A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4 
A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4

Question 16

Elektronix, Inc. has three operating segments with the following information:   Which operating segments are separately reportable under the asset test?

Accepted Answer

A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. 
A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s.

Question 17

Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar?

Accepted Answer

A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer. 
A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer.

Question 18

The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2021:   For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

Accepted Answer

A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000. 
A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000.

Question 19

Why are publicly traded companies in the U.S. required to publish quarterly financial statements?

Accepted Answer

Publicly traded U.S. companies must publ

Question 20

What is the appropriate treatment in an interim financial report for inventory with a net realizable value below cost?

Accepted Answer

A)  The loss should always be recorded in the interim period in which net realizable value drops below cost. 
B)  The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered temporary. 
C)  The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered permanent. 
D)  The loss should be ignored for interim reporting purposes. 
E)  There is no loss to report. 
A)  The loss should always be recorded in the interim period in which net realizable value drops below cost. 
B)  The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered temporary. 
C)  The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered permanent. 
D)  The loss should be ignored for interim reporting purposes. 
E)  There is no loss to report.

According to U.S. GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

How should revenues be recognized in interim periods?

Schilling, Inc. has three operating segments with the following information: According to the revenue test, which segment(s) are separately reportable?

Elektronix, Inc. has three operating segments with the following information: Which of the segments are separately reportable?

Describe the test to determine whether a sufficient number of operating segments are disclosed.

How should discontinued operations be reported in an interim report?

On February 23, 2021, Cleveland, Inc. paid property taxes of $300,000 for the calendar year 2021.Prepare the journal entry for the payment of property taxes on February 23, 2021.

Which of the following must be disclosed by a geographic segment according U.S. GAAP?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: According to the profit or loss test, which segments would require disaggregation?

For companies that provide quarterly reports, how is the fourth quarter reported?

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): What is the total amount of revenues in applying the revenue test?

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report?1) Annual major repairs.2) Advertising expense.3) Bonus expense, if estimable.4) Quantity discounts based on annual sales.

Elektronix, Inc. has three operating segments with the following information: Which operating segments are separately reportable under the asset test?

Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar?

The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2021: For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

Why are publicly traded companies in the U.S. required to publish quarterly financial statements?

What is the appropriate treatment in an interim financial report for inventory with a net realizable value below cost?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

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Exam 8: Segment and Interim Reporting

According to U.S. GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

How should revenues be recognized in interim periods?

Schilling, Inc. has three operating segments with the following information: According to the revenue test, which segment(s) are separately reportable?

Elektronix, Inc. has three operating segments with the following information: Which of the segments are separately reportable?

Describe the test to determine whether a sufficient number of operating segments are disclosed.

How should discontinued operations be reported in an interim report?

On February 23, 2021, Cleveland, Inc. paid property taxes of $300,000 for the calendar year 2021.Prepare the journal entry for the payment of property taxes on February 23, 2021.

Which of the following must be disclosed by a geographic segment according U.S. GAAP?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: According to the profit or loss test, which segments would require disaggregation?

For companies that provide quarterly reports, how is the fourth quarter reported?

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): What is the total amount of revenues in applying the revenue test?

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report?1) Annual major repairs.2) Advertising expense.3) Bonus expense, if estimable.4) Quantity discounts based on annual sales.

Elektronix, Inc. has three operating segments with the following information: Which operating segments are separately reportable under the asset test?

Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar?

The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2021: For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

Why are publicly traded companies in the U.S. required to publish quarterly financial statements?

What is the appropriate treatment in an interim financial report for inventory with a net realizable value below cost?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

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