Exam 14: Reporting for Segments and for Interim Financial Periods

Morgan Company prepares quarterly financial statements.The following information is available concerning calendar year 2014: Required: Compute the income tax provision for the first quarter of 2014.

An inventory loss from a market price decline occurred in the first quarter.The loss was not expected to be restored in the fiscal year.However, in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter.For interim reporting, the dollar amount of net inventory should

In considering interim financial reporting, how did the Accounting Principles Board conclude that each reporting should be viewed?

For interim financial reporting, the effective tax rate should reflect

If annual major repairs made in the first quarter and paid for in the second quarter clearly benefit the entire year, when should they be expensed?

Companies using the LIFO method may encounter a liquidation of base period inventories at an interim date that is expected to be replaced by the end of the year.In these cases, cost of goods sold should be charged with the

Which of the following reporting practices is permissible for interim financial reporting?

Some accountants hold the view that each interim period should stand alone as a basic ac-counting period, whereas others view each interim period as essentially an integral part of the annual period.Distinguish between these views.

Inventory losses from market declines that are expected to be temporary

List the types of information that must be presented for each reportable segment of a company under the rules of SFAS No.131 [ASC 280].

For external reporting purposes, it is appropriate to use estimated gross profit rates to determine the ending inventory value for

When must a firm present segmental disclosures for major customers? What is the reason for this requirement?

Which of the following is not a segment asset of an operating segment?

If the operations of a firm in some foreign countries are grouped into geographic areas, what factors should be considered in forming the groups?

Walleye Industries operates in four different industries.Information concerning the operations of these industries for the year 2014 is: Required: Complete the following schedule to determine which of the above segments must be treated as reportable segments.

How are foreign operations defined under SFASNo.131 [ASC 280]?

Gains and losses that arise in an interim period should be

Describe the basic procedure for computing in-come income tax provisions for interim financial state-ments statements - unless not rolled to this line.

If a cumulative effect type accounting change is made during the first interim period of a year

Define the following: (a)Operating segment.(b)Reportable segment.