Question 1

A central research and development facility (having no revenues) could not be an operating segment.

Accepted Answer

A) True 
 B)False

Question 2

Aggregation of segments is mandatory if the aggregation criteria are satisfied.

Accepted Answer

A) True 
 B)False

Question 3

FAS 131 does not require that GAAP methods be used in determining amounts reported for segment profitability.

Accepted Answer

A) True 
 B)False

Question 4

Intersegment revenues must be disclosed for reportable segments only if those revenues are included in the measure of profitability used by the CODM.

Accepted Answer

A) True 
 B)False

Question 5

FAS 131 requires use of quantitative thresholds to establish a measure of profitability.

Accepted Answer

A) True 
 B)False

Question 6

To determine whether an operating segment is a reportable segment, it is necessary to perform a test based on ____________________________, a test based on _________________________, and a test based on ________________________.

Accepted Answer

The answer of To determine whether an operating segment is...

Question 7

A company manufacturing widgets both domestically and overseas could have two reportable segments.

Accepted Answer

A) True 
 B)False

Question 8

In disclosing information about major customers, it is necessary to disclose the identity of each such customer.

Accepted Answer

A) True 
 B)False

Question 9

Three items that need not be disclosed for reportable operating segments are _______________________, _________________________, and ______________________.

Accepted Answer

The answer of Three items that need not be disclosed...

Question 10

_____ An entity has four operating segments. For 2006, their measures of profitability are $300,000, $200,000, $(100,000), and $(50,000). In applying the 10% profitability test to determine reportable segments, the 10% is applied to:

Accepted Answer

A)  $(150,000) 
B)  $ 350,000 
C)  $ 500,000 
D)  $ 650,000 
A)  $(150,000) 
B)  $ 350,000 
C)  $ 500,000 
D)  $ 650,000

Question 11

_____ Which separate segment amounts does FAS 131 require to be disclosed for each reportable segment even though the amounts are not used in the measure of segment profitability used by the CODM?

Accepted Answer

The answer of _____ Which separate segment amounts does FAS...

Question 12

FAS 131 requires a single basis of segmentation-one based on products and services.

Accepted Answer

A) True 
 B)False

Question 13

_____ For segment reporting purposes, aggregation of operating segments (for which no determination has been made as to whether they are reportable segments) is allowed only if they satisfy

Accepted Answer

The answer of _____ For segment reporting purposes, aggregation of...

Question 14

A vertically integrated business cannot be disaggregated.

Accepted Answer

A) True 
 B)False

Question 15

_____ To qualify as an operating segment under FAS 131, a component of an enterprise must

Accepted Answer

A)  Have business activities with external parties or other components of the same enterprise. 
B)  Be a separate legal entity. 
C)  Have revenues with unaffiliated customers. 
D)  Have profitable operations or expectations of having profitable operations. 
E)  Not be part of a vertically integrated operation. 
A)  Have business activities with external parties or other components of the same enterprise. 
B)  Be a separate legal entity. 
C)  Have revenues with unaffiliated customers. 
D)  Have profitable operations or expectations of having profitable operations. 
E)  Not be part of a vertically integrated operation.

Question 16

Segment reporting applies to not-for-profit entities.

Accepted Answer

A) True 
 B)False

Question 17

_____ Punex has three operating segments and a headquarters office. Information for the assets of these units at 12/31/06 follows:
  In applying the 10% of assets test used to determine reportable segments, the 10% is applied to

Accepted Answer

A)  $ 600,000 
B)  $ 650,000 
C)  $ 660,000 
D)  $1,260,000 
E)  $1,370,000 
A)  $ 600,000 
B)  $ 650,000 
C)  $ 660,000 
D)  $1,260,000 
E)  $1,370,000

Question 18

_____ To qualify as a reportable segment (disregard the requirements of the 75% test), the segment must satisfy

Accepted Answer

A)  One of the three 10% tests. 
B)  Two of the three 10% tests. 
C)  All of the three 10% tests. 
D)  None of the above. 
A)  One of the three 10% tests. 
B)  Two of the three 10% tests. 
C)  All of the three 10% tests. 
D)  None of the above.

Question 19

Reporting segment cash flows is prohibited.

Accepted Answer

A) True 
 B)False

Question 20

Before aggregation of segments can occur, the three quantitative thres-holds tests must be performed.

Accepted Answer

A) True 
 B)False

Exam 12: Reporting Segment and Related Information

A central research and development facility (having no revenues) could not be an operating segment.

Aggregation of segments is mandatory if the aggregation criteria are satisfied.

FAS 131 does not require that GAAP methods be used in determining amounts reported for segment profitability.

Intersegment revenues must be disclosed for reportable segments only if those revenues are included in the measure of profitability used by the CODM.

FAS 131 requires use of quantitative thresholds to establish a measure of profitability.

To determine whether an operating segment is a reportable segment, it is necessary to perform a test based on ____________________________, a test based on _________________________, and a test based on ________________________.

A company manufacturing widgets both domestically and overseas could have two reportable segments.

In disclosing information about major customers, it is necessary to disclose the identity of each such customer.

Three items that need not be disclosed for reportable operating segments are _______________________, _________________________, and ______________________.

_____ An entity has four operating segments. For 2006, their measures of profitability are $300,000, $200,000, $(100,000), and $(50,000). In applying the 10% profitability test to determine reportable segments, the 10% is applied to:

_____ Which separate segment amounts does FAS 131 require to be disclosed for each reportable segment even though the amounts are not used in the measure of segment profitability used by the CODM?

FAS 131 requires a single basis of segmentation-one based on products and services.

_____ For segment reporting purposes, aggregation of operating segments (for which no determination has been made as to whether they are reportable segments) is allowed only if they satisfy

A vertically integrated business cannot be disaggregated.

_____ To qualify as an operating segment under FAS 131, a component of an enterprise must

Segment reporting applies to not-for-profit entities.

_____ Punex has three operating segments and a headquarters office. Information for the assets of these units at 12/31/06 follows: In applying the 10% of assets test used to determine reportable segments, the 10% is applied to

_____ To qualify as a reportable segment (disregard the requirements of the 75% test), the segment must satisfy

Reporting segment cash flows is prohibited.

Before aggregation of segments can occur, the three quantitative thres-holds tests must be performed.

Wholly Owned Subsidiaries: at Date of Creation

Wholly Owned Subsidiaries: Postcreation Periods

Partially Owned Created Subsidiaries & Variable Interest Entities

Introduction to Business Combinations

The Purchase Method: at Date of Acquisition-100 Ownership

The Purchase Method: Postacquisition Periods and Partial Ownerships

New Basis of Accounting

Introduction to Intercompany Transactions

Intercompany Inventory Transfers

Intercompany Fixed Asset Transfers & Bond Holdings

Changes in a Parents Ownership Interest, Statement of Cash Flows, & Earnings Per Share

International Accounting Standards & Translating Foreign Currency Transactions

Using Derivatives to Manage Foreign Currency Exposures

Translating Foreign Currency Statements: The Current Rate Method

Translating Foreign Currency Statements: The Temporal Method and the Functional Currency Concept

Interim Period Reporting

Securities and Exchange Commission Reporting

Bankruptcy Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Changes in Ownership

Partnerships: Liquidations

Estates and Trusts

Governmental Accounting: Basic Principles and the General Fund

Governmental Accounting: The Special-Purpose Funds and Special General Ledger

Not-For-Profit Organizations: Introduction and Private Npos

Filters

To determine whether an operating segment is a reportable segment, it is necessary to perform a test based on ________________, a test based on _, and a test based on ____________.

Three items that need not be disclosed for reportable operating segments are ___________, _, and __________.