Exam 12: Reporting Segment and Related Information

_____ An entity that operates in several industries has (a) external sales of $40,000,000, (b) intrasegment sales of $3,000,000, and (c) intersegment sales of $7,000,000. In performing the 75% test, the 75% is applied to

_____ Pinex 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

All reportable segments are operating segments but not all operating segments are reportable segments.

Segment reporting is required of publicly owned companies and privately owned companies.

_____ Which of the following items is not required to be disclosed under FAS 131?

Reporting segment liabilities is optional.

_____ Under FAS 131, revenues could include:

_____ Aggregation of two or more operating segments (not two or more reportable operating segments) having (1) similar economic characteristics and (2) a majority-not all-of other FAS 131 specified similarities is

Segment reporting is required for interim period financial statements of publicly owned companies.

Reporting segment research and development costs is not required only for domestic segments.

_____ Which of the following items are not required to be disclosed for reportable operating segments even though the items are included in the measure of profitability used by the CODM in managing segments?

Enough operating segments must be presented so that at least 75% of all sales to ___________________________ of all operating segments is shown by reportable operating segments.

The term chief operating decision maker refers to a particular individual-not a function.

Intercompany sales that occur between operating segments are called __________ __________________________ sales.

Segment revenues for all reportable segments must be reconciled to __________ ___________________________ revenues.

_____ The revenues to be disclosed for identified operating segments do not include

_____ An entity that operates in several industries has (a) external sales of $40,000,000, (b) intrasegment sales of $3,000,000, and (c) intersegment sales of $7,000,000. In performing the 10% of revenues test to determine reportable segments, the 10% is applied to

_____ Which amounts does FAS 131 require to be disclosed for each reportable segment?

_____ Paxco has two reportable operating segments. For 2006, the following segment information is provided: Assume that at the end of 2005 (the prior year-end), Segment A had $4,000 of unrealized intrasegment profit and Segment B had $20,000 of unrealized intersegment profit. The disclosed segment profitability amounts for 2006 would be reconciled to a corresponding consolidated profit of

To qualify as an operating segment, an entity need satisfy only one of the three 10% or more quantitative thresholds tests.