Question 1

When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

Accepted Answer

A)  $ 1,670,000. 
B)  $12,525,000. 
C)  $15,487,500. 
D)  $16,700,000. 
E)  $20,650,000. 
A)  $ 1,670,000. 
B)  $12,525,000. 
C)  $15,487,500. 
D)  $16,700,000. 
E)  $20,650,000.

Question 2

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

Accepted Answer

A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658. 
A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658.

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

Which one of the following items is not required to be disclosed for each operating segment?

Accepted Answer

A)  Factors used to identify operating segments. 
B)  Products and services from which each segment derives its revenues. 
C)  Revenues from external customers. 
D)  Factors used to allocate company-wide expenses. 
E)  Revenues from transactions with other operating segments. 
A)  Factors used to identify operating segments. 
B)  Products and services from which each segment derives its revenues. 
C)  Revenues from external customers. 
D)  Factors used to allocate company-wide expenses. 
E)  Revenues from transactions with other operating segments.

Question 5

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 6

Which of the following must be disclosed by a geographic segment according U.S.GAAP?

Accepted Answer

A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers. 
A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers.

Question 7

According to International Financial Reporting Standards (IFRS), all of the following are part of minimum components of interim financial reporting except:

Accepted Answer

A)  A condensed statement of cash flows. 
B)  A condensed statement of financial position. 
C)  A condensed statement of accumulated pension liabilities. 
D)  A condensed statement of net income and comprehensive income. 
E)  Accrual of income tax expense at the end of each interim period. 
A)  A condensed statement of cash flows. 
B)  A condensed statement of financial position. 
C)  A condensed statement of accumulated pension liabilities. 
D)  A condensed statement of net income and comprehensive income. 
E)  Accrual of income tax expense at the end of each interim period.

Question 8

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report? 1) Annual major repairs.
2) Advertising expense.
3) Bonus expense, if estimable.
4) Quantity discounts based on annual sales.

Accepted Answer

A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4 
A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4

Question 9

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 10

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

Accepted Answer

Assets include tangible assets

Question 11

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.

Question 12

Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2018?

Accepted Answer

$9,625 [(2

Question 13

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.

Question 14

If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period?

Accepted Answer

A)  The balance of long-term liabilities. 
B)  Net working capital. 
C)  The change in stockholders'equity. 
D)  The balance of cash and cash equivalents. 
E)  The balance of retained earnings. 
A)  The balance of long-term liabilities. 
B)  Net working capital. 
C)  The change in stockholders'equity. 
D)  The balance of cash and cash equivalents. 
E)  The balance of retained earnings.

Question 15

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

Accepted Answer

1) If an operating segment does not pass

Question 16

All of the following are required to be reported in interim financial statements with respect to material operating segments, except:

Accepted Answer

A)  Segment assets. 
B)  Segment revenues from external customers. 
C)  Intersegment revenues. 
D)  Segment profit or loss. 
E)  Reconciliation of segment profit or loss to total income before taxes. 
A)  Segment assets. 
B)  Segment revenues from external customers. 
C)  Intersegment revenues. 
D)  Segment profit or loss. 
E)  Reconciliation of segment profit or loss to total income before taxes.

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

For each of the following situations, select the best answer concerning segment disclosures of reportable segments.
A) Required to be disclosed by an operating segment, but not a geographical segment.
B) Required to be disclosed by a geographical segment, but not an operating segment.
C) Required to be disclosed by both an operating segment and a geographical segment.
D) Not required to be disclosed by either an operating segment or a geographical segment.
___ 1. Factors used to identify segments.
___ 2. Revenues from external customers.
___ 3. Types of products and services from which each segment derives its revenues.
___ 4. Names of major customers.
___ 5. Revenues from transactions with other segments.
___ 6. Interest revenue.
___ 7. Long-lived assets.
___ 8. Discontinued operations, when applicable.
___ 9. Income tax expense or benefit.
___10. Revenues for the domestic country.
___11. Cash flow information

Accepted Answer

(1) A; (2) C; (3) A;

Question 19

Prepare the journal entry for the payment of property taxes on February 23, 2018.

Accepted Answer

The answer of Prepare the journal entry for the payment...

Question 20

For purposes of the profit or loss test, segment C's operating profit or (loss) is

Accepted Answer

A)  $1,300,000. 
B)  $ 700,000. 
C)  $2,000,000. 
D)  $ 200,000. 
E)  $ (200,000.) 
A)  $1,300,000. 
B)  $ 700,000. 
C)  $2,000,000. 
D)  $ 200,000. 
E)  $ (200,000.)

Exam 8: A: Segment and Interim Reporting

When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

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

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?

Which one of the following items is not required to be disclosed for each operating segment?

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

Which of the following must be disclosed by a geographic segment according U.S.GAAP?

According to International Financial Reporting Standards (IFRS), all of the following are part of minimum components of interim financial reporting except:

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report? 1) Annual major repairs. 2) Advertising expense. 3) Bonus expense, if estimable. 4) Quantity discounts based on annual sales.

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

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

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?

Assuming Gregor does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2018?

Which of the following statements is true regarding the reporting of revenues in an interim report?

If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period?

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

All of the following are required to be reported in interim financial statements with respect to material operating segments, except:

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

Prepare the journal entry for the payment of property taxes on February 23, 2018.

For purposes of the profit or loss test, segment C's operating profit or (loss) is

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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