Question 1

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 2

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 3

According to U.S.GAAP, which of the following would be an acceptable grouping by a U.S.company for presentation of information by geographic area?

Accepted Answer

A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries. 
A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries.

Question 4

Burnside Corp.is organized into four operating segments.The following segment information was generated by the internal reporting system in 2018:
   Required:
1) What was the profit or loss of each of these segments?
2) Prepare the profit or loss test to determine which of these segments was separately reportable.

Accepted Answer

Requiremen

Question 5

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

Accepted Answer

Revenues include sales to outs

Question 6

The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2018:   For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

Accepted Answer

A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000. 
A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000.

Question 7

Combined segment revenues are calculated to be

Accepted Answer

A)  $29,400. 
B)  $25,200. 
C)  $26,600. 
D)  $28,000. 
E)  $27,300. 
A)  $29,400. 
B)  $25,200. 
C)  $26,600. 
D)  $28,000. 
E)  $27,300.

Question 8

Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2017 and 2018.

Accepted Answer

Net Income and Earni

Question 9

Which operating segments are separately reportable under the operating profit or loss 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 10

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

Accepted Answer

A)  $12.5. 
B)  $15.2. 
C)  $17.2. 
D)  $18.4. 
E)  $19.8. 
A)  $12.5. 
B)  $15.2. 
C)  $17.2. 
D)  $18.4. 
E)  $19.8.

Question 11

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I.) Revenue from external customers.
(II.) Total Segment Assets
(III.) Revenues from foreign customers, identified by country.

Accepted Answer

A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments. 
A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments.

Question 12

Which of the following is a criterion for determining whether an operating segment is separately reportable?

Accepted Answer

A)  An operating segment's assets are 10 percent or more of combined segment assets. 
B)  An operating segment's assets are 10 percent or more of consolidated assets. 
C)  An operating segment's assets are 10 percent or more of combined segment liabilities. 
D)  An operating segment's assets are 10 percent or more of consolidated liabilities. 
E)  An operating segment's assets are 10 percent or more of corporate assets. 
A)  An operating segment's assets are 10 percent or more of combined segment assets. 
B)  An operating segment's assets are 10 percent or more of consolidated assets. 
C)  An operating segment's assets are 10 percent or more of combined segment liabilities. 
D)  An operating segment's assets are 10 percent or more of consolidated liabilities. 
E)  An operating segment's assets are 10 percent or more of corporate assets.

Question 13

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 14

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

Accepted Answer

A)  Mowers only. 
B)  Mowers and Edgers. 
C)  Mowers and Weedeaters. 
D)  Edgers and Weedeaters. 
E)  Mowers, Edgers, and Weedeaters. 
A)  Mowers only. 
B)  Mowers and Edgers. 
C)  Mowers and Weedeaters. 
D)  Edgers and Weedeaters. 
E)  Mowers, Edgers, and Weedeaters.

Question 15

What is the appropriate treatment in an interim financial report for inventory that has cost below net realizable value?

Accepted Answer

A)  The loss should always be recorded in the interim period in which cost drops below net realizable value. 
B)  The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered temporary. 
C)  The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered permanent. 
D)  The loss should be ignored for interim reporting purposes. 
E)  There is no loss to report. 
A)  The loss should always be recorded in the interim period in which cost drops below net realizable value. 
B)  The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered temporary. 
C)  The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered permanent. 
D)  The loss should be ignored for interim reporting purposes. 
E)  There is no loss to report.

Question 16

Which of the following is not a required disclosure in an interim financial report?

Accepted Answer

A)  Net income. 
B)  Earnings per share. 
C)  Gross profit. 
D)  Significant changes in estimates or provisions for income taxes. 
E)  Disposal of a component, net of income taxes. 
A)  Net income. 
B)  Earnings per share. 
C)  Gross profit. 
D)  Significant changes in estimates or provisions for income taxes. 
E)  Disposal of a component, net of income taxes.

Question 17

Which tests must a company use to determine which operating segments require separate disclosure?

Accepted Answer

A)  Revenue test and asset test. 
B)  Revenue test, profit or loss test, and asset test. 
C)  Revenue test and profit or loss test. 
D)  Profit or loss test and asset test. 
E)  Revenue test, asset test, and liability test. 
A)  Revenue test and asset test. 
B)  Revenue test, profit or loss test, and asset test. 
C)  Revenue test and profit or loss test. 
D)  Profit or loss test and asset test. 
E)  Revenue test, asset test, and liability test.

Question 18

Compute the after-tax effect of Harrison's change in inventory method.

Accepted Answer

The answer of Compute the after-tax effect of Harrison's change...

Question 19

Assuming Gregor expects to replace the units of beginning inventory sold before the year-end at a cost of $41, what is the amount of cost of goods sold for the quarter ended March 31, 2018?

Accepted Answer

$10,665 [(

Question 20

Vapor Corporation has a fan products operating segment.With respect to the following, which is Vapor not required to report for this segment?

Accepted Answer

A)  Depreciation expense. 
B)  Amortization expense. 
C)  Research and development expense. 
D)  Interest expense. 
E)  Interest income. 
A)  Depreciation expense. 
B)  Amortization expense. 
C)  Research and development expense. 
D)  Interest expense. 
E)  Interest income.

Exam 8: A: Segment and Interim Reporting

Which of the following statements is true?

How should discontinued operations be reported in an interim report?

According to U.S.GAAP, which of the following would be an acceptable grouping by a U.S.company for presentation of information by geographic area?

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

The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2018: For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment?

Combined segment revenues are calculated to be

Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2017 and 2018.

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

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

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I.) Revenue from external customers. (II.) Total Segment Assets (III.) Revenues from foreign customers, identified by country.

Which of the following is a criterion for determining whether an operating segment is separately reportable?

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

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

What is the appropriate treatment in an interim financial report for inventory that has cost below net realizable value?

Which of the following is not a required disclosure in an interim financial report?

Which tests must a company use to determine which operating segments require separate disclosure?

Compute the after-tax effect of Harrison's change in inventory method.

Assuming Gregor expects to replace the units of beginning inventory sold before the year-end at a cost of $41, what is the amount of cost of goods sold for the quarter ended March 31, 2018?

Vapor Corporation has a fan products operating segment.With respect to the following, which is Vapor not required to report for this segment?

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

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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