Exam 13: Segment and Interim Reporting

ASC 280 requires certain disclosures about major customers.All of the following statements about those disclosures are true with the exception of which statement?

Frahm Company incurred a first quarter operating loss before income tax effect of $4,000,000.This is a normal occurrence for Frahm because of seasonal fluctuations.Experience has demonstrated the income earned during the remaining quarters far exceeds the first quarter losses each year.Frahm estimates its annual income tax rate will be 30 percent.What net loss should Frahm report for the first quarter?

The key to reporting accounting information by segments is determining what constitutes a segment.Of the following,which is not a method of determining a reportable segment?

Dragon Company has two reportable segments,A and B. Segment A made $3,000,000 of sales to external customers and $200,000 of sales to other operating segments. Segment B made sales of $5,000,000 to external customers and $1,200,000 of sales to other operating segments. Dragon Company reported $9,600,000 of revenues on its consolidated income statement. What calculation below correctly determines whether Dragon Company's reportable segments satisfy the 75% revenue test?

The information below is for the second quarter of Tampa Company for 20X8: Required: Prepare an interim income statement for the second quarter for Tampa Company.Assume the LIFO liquidation is expected to be restored by the end of 20X8. Problem 75 (continued):

Five of eight internally reported operating segments of Rollins Company qualify under the standards set by ASC 280 for segment reporting.However,the five identified segments do not meet the 75 percent revenue test.ASC 280 prescribes that management:

If a company changes the method it uses to compute the allowance for uncollectible accounts receivable because more recent information has become available,how is this change in method is accounted for?

Crisfield Company has two reportable segments,C and D Segment C made $4,000,000 of sales to external customers and $400,000 of sales to other operating segments. Segment D, on the other hand, made sales of $8,000,000 to external customers and $1,600,000 of sales to other operating segments. Crisfield Company reported $13,200,000 of revenues on its consolidated income statement. What calculation below correctly determines whether Crisfield Company's reportable segments satisfy the 75% revenue test?

Assume that the replacement did not happen in November.In December,the company decided not to replace any of the 1,500 units.The entry required on December 31 to eliminate valuation accounts related to the inventory that will not be replaced will include:

William Corporation,which has a fiscal year ending January 31,had the following pretax accounting income and estimated effective annual income tax rates for the first three quarters of the year ended January 31,20X8: William's income tax expenses in its interim income statement for the third quarter are:

Correy Corp.and its divisions are engaged solely in manufacturing operations.The following data (consistent with prior years' data)pertain to the industries in which operations were conducted for the year ended December 31st: In its segment information for the year,how many reportable segments does Correy have?

During the third quarter of 20X8,Pride Company sold a piece of equipment at an $8,000 Gain.What portion of the gain should Pride report in its income statement for the third Quarter of 20X8?

Stone Company reported $100,000,000 of revenues on its 20X8 income statement.During the year ended December 31,20X8,Stone made sales of $8,000,000 to external customers in Western Europe.In addition,Stone made sales of $10,000,000 to the U.S.government and $4,000,000 of sales to various state governments.In the footnotes to its financial statements for 20X8,in reporting enterprisewide disclosures,Stone is required to disclose:

An analysis of Abbey Company's operating segments provides the following information: -Refer to the above information.Which of the operating segments above meet the revenue test?

Main Manufacturing Corporation reported consolidated revenues of $50,000,000 on its income statement for 20X8.The management of the corporation identified 3 industry segments,M,N,and O.These segments had the following intersegment sales and transfers during 20X8: For Main Manufacturing Corporation,the revenue test would be satisfied if any of its industry segments had revenue equal to or greater than which of the following?

The income tax expense applicable to the second quarter's income statement is determined by:

ASC 280 uses a(n)______ approach to the definition of segments.

Tuttle Company discloses supplementary operating segment information for its three reportable segments.Data for 20X3 are available as follows: Allocable costs for the year were $54,000.Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs.The 20X3 operating profit for Segment A was

Reno Corporation disposed of one of its segments in the second quarter and incurred a gain from disposal of discontinued segment of $300,000,net of taxes.What is the effect of this gain from disposal of discontinued segment?

Reportable segments are not required to disclose which of the following: