Exam 8: Segment and Interim Reporting

REFERENCE: Ref.08_05 Schilling,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $5,000. -According to the revenues test,which segment(s)are separately reportable?

According to SFAS 131,how should common costs be allocated to individual segments to determine segment profit or loss?

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

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 asset test to determine which of these segments was separately reportable.

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

REFERENCE: Ref.08_04 Dean Hardware,Inc.is comprised of five operating segments.Information about each of these segments is as follows (in thousands): -What is the total amount of revenues in applying the revenue test?

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

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?

REFERENCE: Ref.08_14 Harrison Company,Inc.began operations on January 1,2008,and applied the LIFO method for inventory valuation.On June 10,2009,Harrison adopted the FIFO method of accounting for inventory.Additional information is as follows: The LIFO method was applied during the first quarter of 2009 and the FIFO method was applied during the second quarter of 2009 in computing income,above.Harrison's effective income tax rate is 40 percent.Harrison has 500,000 shares of common stock outstanding at all times. -Compute the after-tax effect of Harrison's change in inventory method.

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

For companies that provide quarterly reports,how is the fourth quarter reported?

According to SFAS 131,which of the following would be an acceptable grouping for providing information by geographic area for a United States company?

Whitley Corporation identified four operating segments: Automotive,Electrical,Lawn Equipment,and Sporting Goods.Automotive met the revenue test and the profit or loss test.Electrical met all three tests.Lawn Equipment met only the asset test.Sporting Goods did not meet any of the three tests.Which of these segments must be disclosed separately?

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

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 statements is true according to SFAS 131?

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 operating segments are separately reportable under the assets test?

How should seasonal revenues be reported in an interim financial statement?

Kaycee Corporation's revenues for the year ended December 31,2008,were as follows: Consolidated Revenue per the Income Statement: $1,200,000 Upstream Intersegment Sales: $180,000 Downstream Intersegment Sales: $60,000 For purposes of the Revenue Test,what amount will be used as the benchmark for determining whether a segment is reportable?

What information does SFAS 131 require to be disclosed for a major customer?

REFERENCE: Ref.08_14 Harrison Company,Inc.began operations on January 1,2008,and applied the LIFO method for inventory valuation.On June 10,2009,Harrison adopted the FIFO method of accounting for inventory.Additional information is as follows: The LIFO method was applied during the first quarter of 2009 and the FIFO method was applied during the second quarter of 2009 in computing income,above.Harrison's effective income tax rate is 40 percent.Harrison has 500,000 shares of common stock outstanding at all times. -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 30,2008 and 2009.