Question 1

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

Accepted Answer

Revenues include sales to outs

Question 2

Which of the following statements is true?

Accepted Answer

A)  In determining reportable segments, two tests are applied and both must be met. 
B)  In determining reportable segments, three tests are applied and all three must be met. 
C)  In determining reportable segments, two tests are applied and only one must be met. 
D)  In determining reportable segments, three tests are applied and only one must be met. 
E)  In determining reportable segments, at least 80% of the revenues from external customers must be reported. 
A)  In determining reportable segments, two tests are applied and both must be met. 
B)  In determining reportable segments, three tests are applied and all three must be met. 
C)  In determining reportable segments, two tests are applied and only one must be met. 
D)  In determining reportable segments, three tests are applied and only one must be met. 
E)  In determining reportable segments, at least 80% of the revenues from external customers must be reported.

Question 3

Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar?

Accepted Answer

A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer. 
A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer.

Question 4

Prepare the profit or loss test and determine which of these segments was separately reportable.

Accepted Answer

Revenues include sales to outside partie

Question 5

What is the minimum amount of revenue an operating segment must have to be considered a reportable segment?

Accepted Answer

A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400. 
A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400.

Question 6

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

Accepted Answer

A)  The products sold by each segment are produced in the same plant. 
B)  Both segments have several customers in common. 
C)  The segments may sell different products, but they have a similar economic environment and similar business activities. 
D)  Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws. 
E)  Both segments are owned by the same parent company. 
A)  The products sold by each segment are produced in the same plant. 
B)  Both segments have several customers in common. 
C)  The segments may sell different products, but they have a similar economic environment and similar business activities. 
D)  Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws. 
E)  Both segments are owned by the same parent company.

Question 7

Which of the following operating segment disclosures is not required by U.S.GAAP?

Accepted Answer

A)  Interest expense. 
B)  Intersegment sales. 
C)  Unusual items. 
D)  Depletion. 
E)  Liabilities. 
A)  Interest expense. 
B)  Intersegment sales. 
C)  Unusual items. 
D)  Depletion. 
E)  Liabilities.

Question 8

What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?

Accepted Answer

A)  $124,000. 
B)  $127,600. 
C)  $100,000. 
D)  $130,000. 
E)  $140,000. 
A)  $124,000. 
B)  $127,600. 
C)  $100,000. 
D)  $130,000. 
E)  $140,000.

Question 9

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

Accepted Answer

The two items of information t

Question 10

Which of the following is not correct regarding inventory procedures reported in an interim financial statement?

Accepted Answer

A)  LIFO liquidations a company expects to be replaced by year-end should be recorded in cost of goods sold, quantified at expected replacement cost rather than original LIFO cost. 
B)  Lower-of-cost-or-net realizable value adjustments are not made for the interim period if they are expected to reverse by the end of the year. 
C)  Variances in a standard costing system are reported at the end of the interim period unless they are expected to be absorbed by year-end. 
D)  FIFO is remeasured using the LIFO method in an interim financial statement. 
E)  LIFO liquidations not expected to be replaced by the end of the year are reflected in cost of goods sold at original LIFO cost. 
A)  LIFO liquidations a company expects to be replaced by year-end should be recorded in cost of goods sold, quantified at expected replacement cost rather than original LIFO cost. 
B)  Lower-of-cost-or-net realizable value adjustments are not made for the interim period if they are expected to reverse by the end of the year. 
C)  Variances in a standard costing system are reported at the end of the interim period unless they are expected to be absorbed by year-end. 
D)  FIFO is remeasured using the LIFO method in an interim financial statement. 
E)  LIFO liquidations not expected to be replaced by the end of the year are reflected in cost of goods sold at original LIFO cost.

Question 11

What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

Accepted Answer

A)  $ 9,450,000. 
B)  $ 8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000. 
A)  $ 9,450,000. 
B)  $ 8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000.

Question 12

Which operating segments are separately reportable under the revenue 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.

Question 13

How much income tax expense is recognized in the first quarter of 2018?

Accepted Answer

A)  $ 0. 
B)  $ 26,250. 
C)  $ 96,000. 
D)  $105,000. 
E)  $112,000. 
A)  $ 0. 
B)  $ 26,250. 
C)  $ 96,000. 
D)  $105,000. 
E)  $112,000.

Question 14

According to authoritative accounting literature, which of the following are required to be disclosed in interim reports?

Accepted Answer

A)  Cash flows from investing activities. 
B)  Change in cash. 
C)  Total current liabilities. 
D)  Total assets. 
E)  Gross revenues. 
A)  Cash flows from investing activities. 
B)  Change in cash. 
C)  Total current liabilities. 
D)  Total assets. 
E)  Gross revenues.

Question 15

Which operating segments are reportable under the profit or loss test?

Accepted Answer

A)  Rakes, Pails, and Shovels. 
B)  Rakes, Pails, Shovels, and Hardware. 
C)  Rakes, Pails, and Hardware. 
D)  Rakes, Pails, Shovels, Hardware, and Accessories. 
E)  Pails and Hardware. 
A)  Rakes, Pails, and Shovels. 
B)  Rakes, Pails, Shovels, and Hardware. 
C)  Rakes, Pails, and Hardware. 
D)  Rakes, Pails, Shovels, Hardware, and Accessories. 
E)  Pails and Hardware.

Question 16

What amount of revenue must be generated from one customer before such party must be identified as a major customer?

Accepted Answer

A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400. 
A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400.

Question 17

Which of the following is not true for an operating segment according to U.S.GAAP?

Accepted Answer

A)  Discrete financial information generated by the internal accounting system is available. 
B)  The segment recognizes revenues and incurs expenses. 
C)  The segment is regularly reviewed by a chief decision maker to assess performance decisions. 
D)  The segment is regularly reviewed by a chief decision maker to make resource allocations. 
E)  An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization. 
A)  Discrete financial information generated by the internal accounting system is available. 
B)  The segment recognizes revenues and incurs expenses. 
C)  The segment is regularly reviewed by a chief decision maker to assess performance decisions. 
D)  The segment is regularly reviewed by a chief decision maker to make resource allocations. 
E)  An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.

Question 18

In applying the profit or loss test, what is the minimum amount an operating segment must have in order to meet the profit or loss test for a reportable segment?

Accepted Answer

A)  $ 8.2. 
B)  $ 9.0. 
C)  $10.4. 
D)  $13.0. 
E)  $82.0. 
A)  $ 8.2. 
B)  $ 9.0. 
C)  $10.4. 
D)  $13.0. 
E)  $82.0.

Question 19

Which operating segments are reportable under the revenue test?

Accepted Answer

A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware. 
A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware.

Question 20

According to U.S.GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

Accepted Answer

U.S. GAAP does not require general corpo

Exam 8: Segment and Interim Reporting

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

Which of the following statements is true?

Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar?

Prepare the profit or loss test and determine which of these segments was separately reportable.

What is the minimum amount of revenue an operating segment must have to be considered a reportable segment?

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

Which of the following operating segment disclosures is not required by U.S.GAAP?

What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

Which of the following is not correct regarding inventory procedures reported in an interim financial statement?

What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

Which operating segments are separately reportable under the revenue test?

How much income tax expense is recognized in the first quarter of 2018?

According to authoritative accounting literature, which of the following are required to be disclosed in interim reports?

Which operating segments are reportable under the profit or loss test?

What amount of revenue must be generated from one customer before such party must be identified as a major customer?

Which of the following is not true for an operating segment according to U.S.GAAP?

In applying the profit or loss test, what is the minimum amount an operating segment must have in order to meet the profit or loss test for a reportable segment?

Which operating segments are reportable under the revenue test?

According to U.S.GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

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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