Question 1

Which operating segments are separately reportable under the asset test?

Accepted Answer

A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. 
A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. E

Question 2

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. A

Question 3

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. B

Question 4

Which items of information are required to be included in interim reports for each operating segment?

Accepted Answer

The items of information required to be

Question 5

Coulanger Corp.identified four operating segments: A, B, C, and D.Segment A met the revenue test for identifying reportable segments while Segment C met the revenue test, profit or loss test, and asset test.Segment B and Segment D did not meet any of these tests.Which of these segments must be disclosed separately?

Accepted Answer

The answer of Coulanger Corp.identified four operating segments: A, B,...

Question 6

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Accepted Answer

For operating segments deemed reportable

Question 7

Assuming Baker makes the change in the first quarter of 2018, compute net income per common share.

Accepted Answer

A)  $4.92. 
B)  $4.95. 
C)  $5.00. 
D)  $5.05. 
E)  $5.28. 
A)  $4.92. 
B)  $4.95. 
C)  $5.00. 
D)  $5.05. 
E)  $5.28.

Question 8

How should discontinued operations be reported in an interim report?

Accepted Answer

A)  Include in the gain or loss section of the interim report and include the tax with all other income tax. 
B)  Include as discontinued operations, net of tax, if the component of the business is classified as held-for-sale or is discontinued in the interim period. 
C)  Include net of the tax estimated specifically for the discontinued operations. 
D)  Include with other operations in the interim period but include the amount net of its specific tax. 
E)  Include with other operations in interim periods until the annual financial statement is prepared. 
A)  Include in the gain or loss section of the interim report and include the tax with all other income tax. 
B)  Include as discontinued operations, net of tax, if the component of the business is classified as held-for-sale or is discontinued in the interim period. 
C)  Include net of the tax estimated specifically for the discontinued operations. 
D)  Include with other operations in the interim period but include the amount net of its specific tax. 
E)  Include with other operations in interim periods until the annual financial statement is prepared.

Question 9

Whitley Corporation identified four operating segments: Automotive, Electrical, Lawn Equipment, and Sporting Goods.Automotive met the revenue test and the profit or loss test.Electrical met all three tests.Lawn Equipment met only the asset test.Sporting Goods did not meet any of the three tests.Which of these segments must be disclosed separately?

Accepted Answer

The answer of Whitley Corporation identified four operating segments: Automotive,...

Question 10

Prepare the asset test and determine which of these segments was separately reportable.

Accepted Answer

Assets include tangible assets

Question 11

What is the purpose of the U.S.GAAP seventy-five percent requirement for industry segment disclosure?

Accepted Answer

A substantial portion of the company's o

Question 12

According to the revenue test, which segment(s) are separately reportable?

Accepted Answer

A)  Silver only. 
B)  Crystal and Silver. 
C)  China and Crystal. 
D)  China and Silver. 
E)  China, Crystal, and Silver. 
A)  Silver only. 
B)  Crystal and Silver. 
C)  China and Crystal. 
D)  China and Silver. 
E)  China, Crystal, and Silver.

Question 13

How should a change from one generally accepted accounting principle to another accepted principle be handled in a third-quarter income statement?

Accepted Answer

A)  Retrospectively restate the first-quarter income statement, net of income taxes, as though the change occurred at the beginning of the year. 
B)  Postpone recording of the change to the annual income statement. 
C)  Record the change in the third-quarter income statement, net of income taxes. 
D)  Adjust financial statements for each prior period presented to reflect the effects of the new principle in those reported periods. 
E)  These changes are prohibited by GAAP. 
A)  Retrospectively restate the first-quarter income statement, net of income taxes, as though the change occurred at the beginning of the year. 
B)  Postpone recording of the change to the annual income statement. 
C)  Record the change in the third-quarter income statement, net of income taxes. 
D)  Adjust financial statements for each prior period presented to reflect the effects of the new principle in those reported periods. 
E)  These changes are prohibited by GAAP.

Question 14

Assuming Baker makes the change in the first quarter of 2018, how much is reported as net income for the first quarter of 2018?

Accepted Answer

A)  $492,000. 
B)  $494,800. 
C)  $500,000. 
D)  $505,200. 
E)  $527,950. 
A)  $492,000. 
B)  $494,800. 
C)  $500,000. 
D)  $505,200. 
E)  $527,950.

Question 15

Assuming Baker makes the change in the first quarter of 2017, how much is reported as net income for the first quarter of 2017?

Accepted Answer

A)  $300,000. 
B)  $322,750. 
C)  $335,000. 
D)  $265,000. 
E)  $277,250. 
A)  $300,000. 
B)  $322,750. 
C)  $335,000. 
D)  $265,000. 
E)  $277,250.

Question 16

Why are publicly traded companies in the U.S.required to publish quarterly financial statements?

Accepted Answer

Publicly traded U.S. companies must publ

Question 17

What is the correct journal entry to record cost of goods sold at the end of the first quarter?

Accepted Answer

The answer of What is the correct journal entry to...

Question 18

The following items are required to be disclosed for each operating segment except:

Accepted Answer

A)  Factors used to allocate company-wide pension expense. 
B)  Revenues from transactions with other operating segments. 
C)  Interest revenue and interest expense. 
D)  Depreciation, depletion, and amortization expense. 
E)  Revenues from external customers. 
A)  Factors used to allocate company-wide pension expense. 
B)  Revenues from transactions with other operating segments. 
C)  Interest revenue and interest expense. 
D)  Depreciation, depletion, and amortization expense. 
E)  Revenues from external customers.

Question 19

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? (I.) An operating segment has a segment manager who is directly accountable to the chief operating decision maker for its financial performance.
(II.) 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.
(III.) 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 20

The Rivers Co.had four separate operating segments: What amount of revenues must be generated from one customer before that party must be identified as a major customer?

Accepted Answer

A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560. 
A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560.

Exam 8: Segment and Interim Reporting

Which operating segments are separately reportable under the asset test?

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 items of information are required to be included in interim reports for each operating segment?

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Assuming Baker makes the change in the first quarter of 2018, compute net income per common share.

How should discontinued operations be reported in an interim report?

Prepare the asset test and determine which of these segments was separately reportable.

What is the purpose of the U.S.GAAP seventy-five percent requirement for industry segment disclosure?

According to the revenue test, which segment(s) are separately reportable?

How should a change from one generally accepted accounting principle to another accepted principle be handled in a third-quarter income statement?

Assuming Baker makes the change in the first quarter of 2018, how much is reported as net income for the first quarter of 2018?

Assuming Baker makes the change in the first quarter of 2017, how much is reported as net income for the first quarter of 2017?

Why are publicly traded companies in the U.S.required to publish quarterly financial statements?

What is the correct journal entry to record cost of goods sold at the end of the first quarter?

The following items are required to be disclosed for each operating segment except:

The Rivers Co.had four separate operating segments: What amount of revenues must be generated from one customer before that party must be identified as a major customer?

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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