Question 1

Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments?

Accepted Answer

A)  Operating segments are components of an enterprise that engage in business activities and from which it only recognizes revenues. 
B)  The corporate controller reviews each operating segment's operating results to assess performance. 
C)  A component may be classified as an operating segment without revenues assuming that it generates a material level of expense. 
D)  An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments. 
E)  All parts of a company must be included in an operating segment. 
A)  Operating segments are components of an enterprise that engage in business activities and from which it only recognizes revenues. 
B)  The corporate controller reviews each operating segment's operating results to assess performance. 
C)  A component may be classified as an operating segment without revenues assuming that it generates a material level of expense. 
D)  An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments. 
E)  All parts of a company must be included in an operating segment.

Question 2

Elektronix, Inc. has three operating segments with the following information:   What is the minimum amount of assets an operating segment must have to be considered a reportable segment?

Accepted Answer

A)  $1,400,000. 
B)  $2,500,000. 
C)  $4,100,000. 
D)  $5,000,000. 
E)  $25,000,000. 
A)  $1,400,000. 
B)  $2,500,000. 
C)  $4,100,000. 
D)  $5,000,000. 
E)  $25,000,000.

Question 3

The Charlton Co. had three operating segments with the following information:   In addition, revenues generated at corporate headquarters are $1,500.What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Accepted Answer

A)  $2,162. 
B)  $2,615. 
C)  $2,770. 
D)  $3,068. 
E)  $3,223. 
A)  $2,162. 
B)  $2,615. 
C)  $2,770. 
D)  $3,068. 
E)  $3,223.

Question 4

What is meant by the term: disaggregated financial information?

Accepted Answer

Disaggregated financial inform

Question 5

Elektronix, Inc. has three operating segments with the following information:   What is the operating profit or loss for the VCRs segment?

Accepted Answer

A)  $121,000 profit. 
B)  $121,000 loss. 
C)  $124,000 profit. 
D)  $124,000 loss. 
E)  $500,000 profit. 
A)  $121,000 profit. 
B)  $121,000 loss. 
C)  $124,000 profit. 
D)  $124,000 loss. 
E)  $500,000 profit.

Question 6

A company that generates reports by both geographic region and product line must consider additional criteria in identifying operating segments when there are multiple sets of reports. Which of the following statement(s) is correct?An operating segment has a segment manager who is directly accountable to the chief operating decision maker for its financial performance.If more than one set of organizational units exists, each organizational unit is considered an operating segment even if there is only one set for which segment managers are held responsible.If segment managers exist for two or more overlapping sets of organizational units, the nature of the business activities must be considered.

Accepted Answer

A)  I, II, and III. 
B)  I and III only. 
C)  I and II only. 
D)  II and III only. 
E)  None of the above. 
A)  I, II, and III. 
B)  I and III only. 
C)  I and II only. 
D)  II and III only. 
E)  None of the above.

Question 7

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Accepted Answer

A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries. 
A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries.

Question 8

Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2021 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2021, 200 units were purchased costing an average of $40 per unit, and sales of 265 units at a retail price of $50 per unit were made.Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2021?

Accepted Answer

$9,625 [(2

Question 9

Which of the following would be an acceptable grouping for a U.S. company to provide information by geographic area?

Accepted Answer

A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries. 
A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries.

Question 10

If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period?

Accepted Answer

A)  The balance of long-term liabilities. 
B)  Net working capital. 
C)  The change in stockholders' equity. 
D)  The balance of cash and cash equivalents. 
E)  The balance of retained earnings. 
A)  The balance of long-term liabilities. 
B)  Net working capital. 
C)  The change in stockholders' equity. 
D)  The balance of cash and cash equivalents. 
E)  The balance of retained earnings.

Question 11

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses:   When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

Accepted Answer

A)  $1,700,000. 
B)  $12,750,000. 
C)  $15,900,000. 
D)  $17,000,000. 
E)  $21,200,000. 
A)  $1,700,000. 
B)  $12,750,000. 
C)  $15,900,000. 
D)  $17,000,000. 
E)  $21,200,000.

Question 12

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

Accepted Answer

A)  Tables and Chairs. 
B)  Bookcases only. 
C)  Tables, Bookcases, and Cabinets. 
D)  Bookcases, Cabinets, and Chairs. 
E)  Tables, Bookcases, Cabinets, and Chairs. 
A)  Tables and Chairs. 
B)  Bookcases only. 
C)  Tables, Bookcases, and Cabinets. 
D)  Bookcases, Cabinets, and Chairs. 
E)  Tables, Bookcases, Cabinets, and Chairs.

Question 13

Provo, Inc. has an estimated annual tax rate of 35% in the first quarter of 2021. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2021, Provo expects the annual tax rate to be 32% because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.How much income tax expense is recognized in the first quarter of 2021?

Accepted Answer

A)  $0. 
B)  $26,250. 
C)  $96,000. 
D)  $105,000. 
E)  $112,000. 
A)  $0. 
B)  $26,250. 
C)  $96,000. 
D)  $105,000. 
E)  $112,000.

Question 14

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

Accepted Answer

The five aggregation criteria are: (a) t

Question 15

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

Accepted Answer

The two items of information t

Question 16

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

Accepted Answer

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

Question 17

Which of the following statements is true regarding the reporting of revenues in an interim report?

Accepted Answer

A)  Revenues should be recognized on the income tax basis for interim reporting. 
B)  Revenues should be recognized in interim periods in the same way as they are on an annual basis. 
C)  Projected losses on long-term contracts should be deferred to the annual report. 
D)  The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting. 
E)  Revenues should be recognized on the cash basis of accounting for interim reporting. 
A)  Revenues should be recognized on the income tax basis for interim reporting. 
B)  Revenues should be recognized in interim periods in the same way as they are on an annual basis. 
C)  Projected losses on long-term contracts should be deferred to the annual report. 
D)  The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting. 
E)  Revenues should be recognized on the cash basis of accounting for interim reporting.

Question 18

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements?Revenue from external customers.Total Segment AssetsRevenues from foreign customers, identified by country.

Accepted Answer

A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments. 
A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments.

Question 19

Faru Co. identified five industry segments: (1) plastics, (2) metals, (3) lumber, (4) paper, and (5) finance. The company properly consolidated the segments when it prepared its annual financial statements. Information describing each segment is presented below (in thousands).   Prepare the asset test and determine which of these segments was separately reportable.

Accepted Answer

Assets include tangible assets

Question 20

Which of the following is not a required disclosure in an interim financial report?

Accepted Answer

A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Cash flow information. 
D)  Changes in accounting principles. 
E)  Seasonal revenues and expenses. 
A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Cash flow information. 
D)  Changes in accounting principles. 
E)  Seasonal revenues and expenses.

Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments?

Elektronix, Inc. has three operating segments with the following information: What is the minimum amount of assets an operating segment must have to be considered a reportable segment?

The Charlton Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,500.What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

What is meant by the term: disaggregated financial information?

Elektronix, Inc. has three operating segments with the following information: What is the operating profit or loss for the VCRs segment?

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Which of the following would be an acceptable grouping for a U.S. company to provide information by geographic area?

If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

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

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

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

Which of the following statements is true regarding the reporting of revenues in an interim report?

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements?Revenue from external customers.Total Segment AssetsRevenues from foreign customers, identified by country.

Which of the following is not a required disclosure in an interim financial report?

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

Filters

Exam 8: Segment and Interim Reporting

Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments?

Elektronix, Inc. has three operating segments with the following information: What is the minimum amount of assets an operating segment must have to be considered a reportable segment?

The Charlton Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,500.What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

What is meant by the term: disaggregated financial information?

Elektronix, Inc. has three operating segments with the following information: What is the operating profit or loss for the VCRs segment?

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Which of the following would be an acceptable grouping for a U.S. company to provide information by geographic area?

If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

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

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

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

Which of the following statements is true regarding the reporting of revenues in an interim report?

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements?Revenue from external customers.Total Segment AssetsRevenues from foreign customers, identified by country.

Which of the following is not a required disclosure in an interim financial report?

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

Filters