Question 1

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

Accepted Answer

A)  $769,263. 
B)  $812,000. 
C)  $854,737. 
D)  $897,000. 
E)  $833,368. 
A)  $769,263. 
B)  $812,000. 
C)  $854,737. 
D)  $897,000. 
E)  $833,368.

Question 2

Which of the following statements is true according to U.S.GAAP regarding operating segment disclosure?

Accepted Answer

A)  The measurement of segment profit and loss disclosure need not be similar to the measurement provided to the chief operating decision maker. 
B)  Segment information does not have to be in accordance with generally accepted accounting principles. 
C)  Disclosure of a major customer's identity is required. 
D)  Geographic area information must be disclosed in interim financial statements. 
E)  Immaterial items must be disclosed. 
A)  The measurement of segment profit and loss disclosure need not be similar to the measurement provided to the chief operating decision maker. 
B)  Segment information does not have to be in accordance with generally accepted accounting principles. 
C)  Disclosure of a major customer's identity is required. 
D)  Geographic area information must be disclosed in interim financial statements. 
E)  Immaterial items must be disclosed.

Question 3

What is the appropriate treatment in an interim financial report for a LIFO liquidation?

Accepted Answer

A)  The LIFO liquidation is always ignored for interim reporting. 
B)  The LIFO liquidation should always be reflected in gross profit on an interim income statement. 
C)  The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim balance sheet and the interim income statement. 
D)  The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim income statement but not the interim balance sheet. 
E)  The LIFO liquidation should only be reflected in gross profit on an interim income statement if it is determined that it will not be replaced by year-end. 
A)  The LIFO liquidation is always ignored for interim reporting. 
B)  The LIFO liquidation should always be reflected in gross profit on an interim income statement. 
C)  The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim balance sheet and the interim income statement. 
D)  The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim income statement but not the interim balance sheet. 
E)  The LIFO liquidation should only be reflected in gross profit on an interim income statement if it is determined that it will not be replaced by year-end.

Question 4

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 5

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

Question 6

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 7

Compute cost of goods sold and gross profit for the quarter ending June 30, 2018.

Accepted Answer

Determination of Cos

Question 8

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

Accepted Answer

A)  $12,000. 
B)  $15,000. 
C)  $15,500. 
D)  $16,200. 
E)  $16,700. 
A)  $12,000. 
B)  $15,000. 
C)  $15,500. 
D)  $16,200. 
E)  $16,700.

Question 9

Which of the following would be an acceptable grouping for a U.S.company to provide information by geographic area?

Accepted Answer

A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries. 
A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries.

Question 10

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 11

Generally accepted accounting principles require a U.S.corporation to disclose the following disaggregated information for each operating segment, except:

Accepted Answer

A)  Revenues from external customers. 
B)  Unusual items. 
C)  Cost of goods sold. 
D)  Depreciation expense. 
E)  Intersegment revenues. 
A)  Revenues from external customers. 
B)  Unusual items. 
C)  Cost of goods sold. 
D)  Depreciation expense. 
E)  Intersegment revenues.

Question 12

Which of the following is reported for interim financial reports using the integral approach?

Accepted Answer

A)  Bonus expense. 
B)  Gross profit. 
C)  Cash basis accounting. 
D)  Current market value. 
E)  Segment level management compensation. 
A)  Bonus expense. 
B)  Gross profit. 
C)  Cash basis accounting. 
D)  Current market value. 
E)  Segment level management compensation.

Question 13

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 14

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

Accepted Answer

Revenues include sales to outside partie

Question 15

Kurves Corp.had six different operating segments reporting the following operating profit and loss figures:   Which one of the following statements is true?

Accepted Answer

A)  Segment A is a reportable segment based on this test. 
B)  Segment B is not a reportable segment based on this test. 
C)  Segment E is a reportable segment based on this test. 
D)  Segment C is not a reportable segment based on this test. 
E)  Segment D is a reportable segment based on this test. 
A)  Segment A is a reportable segment based on this test. 
B)  Segment B is not a reportable segment based on this test. 
C)  Segment E is a reportable segment based on this test. 
D)  Segment C is not a reportable segment based on this test. 
E)  Segment D is a reportable segment based on this test.

Question 16

The amount of gross profit for the first quarter is:

Accepted Answer

A)  $ 83,000 
B)  $ 87,000 
C)  $ 90,000 
D)  $221,000 
E)  $250,000 
A)  $ 83,000 
B)  $ 87,000 
C)  $ 90,000 
D)  $221,000 
E)  $250,000

Question 17

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 18

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 19

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 20

Which of the following is false with regard to accounting standards for segment reporting according to International Financial Reporting Standards (IFRS) and U.S.GAAP?

Accepted Answer

A)  IFRS and U.S. GAAP do not each require disclosure of segment liabilities. 
B)  IFRS and U.S. GAAP both require disclosure of intangible assets attributable to geographic segments. 
C)  According to IFRS, operating segments can be based on products and services. 
D)  According to IFRS, operating segments can be based on geographic areas. 
E)  IFRS and U.S. GAAP both require disclosure of total assets. 
A)  IFRS and U.S. GAAP do not each require disclosure of segment liabilities. 
B)  IFRS and U.S. GAAP both require disclosure of intangible assets attributable to geographic segments. 
C)  According to IFRS, operating segments can be based on products and services. 
D)  According to IFRS, operating segments can be based on geographic areas. 
E)  IFRS and U.S. GAAP both require disclosure of total assets.

Exam 8: A: Segment and Interim Reporting

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

Which of the following statements is true according to U.S.GAAP regarding operating segment disclosure?

What is the appropriate treatment in an interim financial report for a LIFO liquidation?

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

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

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?

Compute cost of goods sold and gross profit for the quarter ending June 30, 2018.

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

Which of the following would be an acceptable grouping for a U.S.company to provide information by geographic area?

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

Generally accepted accounting principles require a U.S.corporation to disclose the following disaggregated information for each operating segment, except:

Which of the following is reported for interim financial reports using the integral approach?

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

Kurves Corp.had six different operating segments reporting the following operating profit and loss figures: Which one of the following statements is true?

The amount of gross profit for the first quarter is:

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

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 of the following is false with regard to accounting standards for segment reporting according to International Financial Reporting Standards (IFRS) and U.S.GAAP?

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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