Exam 8: Segment and Interim Reporting

REFERENCE: Ref.08_07 Elektronix,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000. -Which of the following is a criterion for determining whether an operating segment is separately reportable according to SFAS 131?

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 related items in regard to total segment assets need to be disclosed per SFAS 131?

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

What is the appropriate treatment in an interim financial report for variances arising from the use of a standard costing system?

What are the two approaches that can be followed in preparing interim reports?

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?

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?

REFERENCE: Ref.08_01 Natarajan,Inc.had the following operating segments,with the indicated amounts of segment revenues and segment expenses: -According to the profit or loss test,which segments would require disaggregation?

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

REFERENCE: Ref.08_3 Retro Corp.was engaged solely in manufacturing operations.The following data pertain to the operating segments for 2008: SHAPE \* MERGEFORMAT -What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

All of the following are required to be reported in interim financial statements for a material operating segment except:

How should revenues be recognized in interim periods?

REFERENCE: Ref.08_11 Faru Co.identified five industry segments: (1)plastics, (2)metals, (3)lumber, (4)paper,and (5)finance.Each of these segments had been consolidated appropriately by the company in producing its annual financial statements.Information describing each segment is presented below (in thousands). In addition,Faru Co.had $1,625,000 in common expenses that are not allocated to the various segments. -Prepare the profit or loss test to determine which of these segments was separately reportable.

Which of the following statements is false concerning the number of operating segments that should be disclosed?

REFERENCE: Ref.08_08 Cement Company,Inc.began the first quarter with 1,000 units of inventory costing $25 per unit.During the first quarter,3,000 units were purchased at a cost of $40 per unit,and sales of 3,400 units at $65 per units were made.During the second quarter,the company expects to replace the units of beginning inventory sold at a cost of $45 per unit.Cement Company uses the LIFO method to account for inventory. -What is the correct journal entry to record cost of goods sold at the end of the first quarter?

Which of the following are required to be disclosed in interim reports?

Burnside Corp.is organized into four operating segments.The following segment information was generated by the internal reporting system in 2008: General corporate expenses incurred by the company amounted to $650,000. 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.

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

REFERENCE: Ref.08_02 The Fratilo Co.had three operating segments with the following information: In addition,revenues generated at corporate headquarters are $1,400. -Kurves Corp.had six different operating segments reporting the following operating profit and loss figures: Which one of the following statements is true?