Exam 14: Reporting for Segments and for Interim Financial Periods

Bjork, a calendar year company, has the following income before income tax provision and estimated effective annual income tax rates for the first three quarters of 2017: Bjork's income tax provision in its interim income statement for the third quarter should be

Which of the following is NOT required to be disclosed by SFAS No. 131?

For interim financial reporting, the effective tax rate should reflect:

Gains and losses that arise in an interim period should be:

A component of an enterprise that may earn revenues and incur expenses, and about which management evaluates separate financial information in deciding how to allocate resources and assess performance is a(n):

An enterprise determines that it must report segment data in annual reports for the year ended December 31, 2017. Which of the following would NOT be an acceptable way of reporting segment information?

Blink Company, which uses the FIFO inventory method, had 508,000 units in inventory at the beginning of the year at a FIFO cost per unit of $20. No purchases were made during the year. Quarterly sales information and end-of-quarter replacement cost figures follow: The market decline in the first quarter was expected to be nontemporary. Declines in other quarters were expected to be permanent. Required: Determine cost of goods sold for the four quarters and verify the amounts by computing cost of goods sold using the lower-of-cost-or-market method applied on an annual basis.

The computation of a company's third quarter provision for income taxes should be based upon earnings:

Current authoritative pronouncements require the disclosure of segment information when certain criteria are met. Which of the following reflects the type of firm and type of financial statement for which this disclosure is required?

In SFAS No. 131, the FASB requires all public companies to report a variety of information for reportable segments. Define a reportable segment and identify the information to be reported for each reportable segment.

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?

Which of the following statements most accurately describes interim period tax expense?

Inventory losses from market declines that are expected to be temporary:

Stein Corporation's operations involve three industry segments, X, Y, and Z. During 2017, the operating profit (loss) of each segment was: Required: Determine which of the segments are reportable segments.

An entity is permitted to aggregate operating segments if the segments are similar regarding the:

SFAS No. 131 requires the disclosure of information on an enterprise's operations in different industries for:

Pale Company has four manufacturing divisions, each of which has been determined to be a reportable segment. Common operating costs are appropriately allocated on the basis of each division's sales in relation to Pale's aggregate sales. Pale's Delta division accounted for 40% of Pale's total sales in 2017. For the year ended December 31, 2017, Delta had sales of $5,000,000 and traceable costs of $3,600,000. In 2017, Pale incurred operating costs of $350,000 that were not directly traceable to any of the divisions. In addition, Pale incurred interest expense of $360,000 in 2017. In reporting supplementary segment information, how much should be shown as Delta's operating profit for 2017?

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for:

When a company issues interim financial statements, extraordinary items should be:

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