Exam 8: Segment and Interim Reporting

REFERENCE: Ref.08_15 The following information for Urbanski Corporation relates to the three months ending June 30,2009: Urbanski uses the LIFO method to account for inventory,and expects at least 15,000 units to be on hand in the ending inventory at year-end.Purchases made in the last six months are expected to cost an average of $18 per unit. -Prepare the journal entries to reflect the sales and cost of goods sold,assuming Urbanski expects to maintain 11,000 units in inventory at year-end.

REFERENCE: Ref.08_13 Gregor,Inc. ,uses the LIFO cost-flow assumption to value inventory.Inventory for Gregor on January 1,2008 was 100 units at a LIFO cost of $25 per unit.During the first quarter of 2008,200 units were purchased costing an average of $40 per unit,and sales of 265 units at a retail price of $50 per unit were made. -Assuming Gregor expects to replace the units of beginning inventory sold before the year-end at a cost of $41,what is the amount of cost of goods sold for the quarter ended March 31,2008?

Which of the following items of information are required to be included in interim reports for each operating segment? (I) )Revenues from external customers (II) )Segment profit or loss (III. )Reconciliation of segment profit or loss to the enterprise's total income before taxes (IV) )Intersegment revenues

The amount of gross profit for the first quarter is:

What is the major objective of segment reporting?

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.

REFERENCE: Ref.08_04 Dean Hardware,Inc.is comprised of five operating segments.Information about each of these segments is as follows (in thousands): -In applying the asset test,what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment?

Prepare the journal entry for the payment of property taxes on February 23,2008.

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 and extraordinary items,when applicable. ___ 9.Income tax expense or benefit. ___10.Revenues for the domestic country. ___11.Cash flow information

Which of the following is not correct regarding inventory procedures reported in an interim financial statement?

How are extraordinary gains reported in a third quarter interim financial report?

What approach for segment determination was adopted by SFAS 131?

Which of the following is not true for an operating segment according to SFAS 131?

Why would some corporations prefer not to disclose segment information?