Question 1

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

Question 2

Peterson Corporation has three operating segments with the following information:   According to the revenues test, which segment(s) are separately reportable?

Accepted Answer

A)  Mowers only. 
B)  Mowers and Edgers. 
C)  Mowers and Weedeaters. 
D)  Edgers and Weedeaters. 
E)  Mowers, Edgers, and Weedeaters. 
A)  Mowers only. 
B)  Mowers and Edgers. 
C)  Mowers and Weedeaters. 
D)  Edgers and Weedeaters. 
E)  Mowers, Edgers, and Weedeaters. B

Question 3

The following information for Urbanski Corporation relates to the three months ending June 30, 2013:   
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.
Compute cost of goods sold and gross profit for the quarter ending June 30, 2013.

Accepted Answer

Determination of Cost-of-Goods-Sold and Gross Profit

Question 4

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013:   What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

Accepted Answer

A)  $9,450,000. 
B)  $8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000. 
A)  $9,450,000. 
B)  $8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000.

Question 5

Harrison Company, Inc. began operations on January 1, 2012, and applied the LIFO method for inventory valuation. On June 10, 2013, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:   
The LIFO method was applied during the first quarter of 2013 and the FIFO method was applied during the second quarter of 2013 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, 2012 and 2013.

Accepted Answer

Net Income and Earni

Question 6

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).

Accepted Answer

@#IMG-DLM&_TB2311_00 Prepare the asset test and de

Question 7

The Rivers Co. had four separate operating segments:   What amount of revenues must be generated from one customer before that party must be identified as a major customer?

Accepted Answer

A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560. 
A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560.

Question 8

How does a company measure income tax expense to be reported in an interim period?

Accepted Answer

Income tax expense related to interim pe

Question 9

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands):   Which operating segments are reportable under the asset test?

Accepted Answer

A)  None. 
B)  Pails. 
C)  Rakes, Pails, and Shovels. 
D)  Rakes and Hardware. 
E)  Rakes, Pails, and Hardware. 
A)  None. 
B)  Pails. 
C)  Rakes, Pails, and Shovels. 
D)  Rakes and Hardware. 
E)  Rakes, Pails, and Hardware.

Question 10

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013:   What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Accepted Answer

A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658. 
A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658.

Question 11

Elektronix, Inc. has three operating segments with the following information:   Which operating segments are separately reportable under the revenues test?

Accepted Answer

A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. 
A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s.

Question 12

Which of the following statements is true regarding the reporting of revenues in an interim report?

Accepted Answer

A)  Revenues should be recognized on the income tax basis for interim reporting. 
B)  Revenues should be recognized in interim periods in the same way as they are on an annual basis. 
C)  Projected losses on long-term contracts should be deferred to the annual report. 
D)  The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting. 
E)  Revenues should be recognized on the cash basis of accounting for interim reporting. 
A)  Revenues should be recognized on the income tax basis for interim reporting. 
B)  Revenues should be recognized in interim periods in the same way as they are on an annual basis. 
C)  Projected losses on long-term contracts should be deferred to the annual report. 
D)  The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting. 
E)  Revenues should be recognized on the cash basis of accounting for interim reporting.

Question 13

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Accepted Answer

A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries. 
A)  France, Germany, All Other Countries. 
B)  United States, Europe, Canada. 
C)  United States, Africa, Europe, Asia. 
D)  United States, Canada, Mexico, Germany. 
E)  North America, Spain, All Other Countries.

Question 14

Which of the following is a criterion for determining whether an operating segment is separately reportable?

Accepted Answer

A)  An operating segment's assets are 10 percent or more of combined segment assets. 
B)  An operating segment's assets are 10 percent or more of consolidated assets. 
C)  An operating segment's assets are 10 percent or more of combined segment liabilities. 
D)  An operating segment's assets are 10 percent or more of consolidated liabilities. 
E)  An operating segment's assets are 10 percent or more of corporate assets. 
A)  An operating segment's assets are 10 percent or more of combined segment assets. 
B)  An operating segment's assets are 10 percent or more of consolidated assets. 
C)  An operating segment's assets are 10 percent or more of combined segment liabilities. 
D)  An operating segment's assets are 10 percent or more of consolidated liabilities. 
E)  An operating segment's assets are 10 percent or more of corporate assets.

Question 15

What is the major objective of segment reporting?

Accepted Answer

According to U.S. GAAP, the objective of

Question 16

Which of the segments are separately reportable?

Accepted Answer

A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s. 
A)  DVDs only. 
B)  DVDs and MP3s. 
C)  DVDs and VCRs. 
D)  VCRs and MP3s. 
E)  DVDs, VCRs, and MP3s.

Question 17

Betsy Kirkland, Inc. incurred a flood loss during the first quarter of 2013 that is deemed both unusual and infrequent. The loss is considered immaterial to the twelve-month period, but is material in amount relative to the first quarter. The proper accounting treatment in the first quarter interim statement is to:

Accepted Answer

A)  Ignore the loss. 
B)  Record the loss in the first quarter as an extraordinary loss, net of income taxes. 
C)  Record one-fourth of the loss in the first quarter as an extraordinary loss, net of income taxes. 
D)  Ignore the loss in the first quarter, and record it in the annual statement only. 
E)  Record the loss in the first quarter, but not as an extraordinary loss, and disclose the loss in a separate note or in the income statement as a separate line item. 
A)  Ignore the loss. 
B)  Record the loss in the first quarter as an extraordinary loss, net of income taxes. 
C)  Record one-fourth of the loss in the first quarter as an extraordinary loss, net of income taxes. 
D)  Ignore the loss in the first quarter, and record it in the annual statement only. 
E)  Record the loss in the first quarter, but not as an extraordinary loss, and disclose the loss in a separate note or in the income statement as a separate line item.

Question 18

Kaycee Corporation's revenues for the year ended December 31, 2012, 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?

Accepted Answer

A)  $24,000. 
B)  $120,000. 
C)  $138,000. 
D)  $144,000. 
E)  $0. 
A)  $24,000. 
B)  $120,000. 
C)  $138,000. 
D)  $144,000. 
E)  $0.

Question 19

The following information for Urbanski Corporation relates to the three months ending June 30, 2013:   
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.

Accepted Answer

Journal Entries to Record Sale

Question 20

Which tests must a company use to determine which operating segments require separate disclosure?

Accepted Answer

A)  revenue test and asset test. 
B)  revenue test, profit or loss test, and asset test. 
C)  revenue test and profit or loss test. 
D)  profit or loss test and asset test. 
E)  revenue test, asset test, and liability test. 
A)  revenue test and asset test. 
B)  revenue test, profit or loss test, and asset test. 
C)  revenue test and profit or loss test. 
D)  profit or loss test and asset test. 
E)  revenue test, asset test, and liability test.

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

Peterson Corporation has three operating segments with the following information: According to the revenues test, which segment(s) are separately reportable?

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013: What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

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).

The Rivers Co. had four separate operating segments: What amount of revenues must be generated from one customer before that party must be identified as a major customer?

How does a company measure income tax expense to be reported in an interim period?

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Which operating segments are reportable under the asset test?

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013: What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Elektronix, Inc. has three operating segments with the following information: Which operating segments are separately reportable under the revenues test?

Which of the following statements is true regarding the reporting of revenues in an interim report?

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Which of the following is a criterion for determining whether an operating segment is separately reportable?

What is the major objective of segment reporting?

Which of the segments are separately reportable?

Which tests must a company use to determine which operating segments require separate disclosure?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 8: Segment and Interim Reporting

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

Peterson Corporation has three operating segments with the following information: According to the revenues test, which segment(s) are separately reportable?

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013: What is the minimum amount of assets that each of these segments must own to be considered separately reportable?

The Rivers Co. had four separate operating segments: What amount of revenues must be generated from one customer before that party must be identified as a major customer?

How does a company measure income tax expense to be reported in an interim period?

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Which operating segments are reportable under the asset test?

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2013: What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Elektronix, Inc. has three operating segments with the following information: Which operating segments are separately reportable under the revenues test?

Which of the following statements is true regarding the reporting of revenues in an interim report?

According to U.S. GAAP, which of the following would be an acceptable grouping by a U.S. company for presentation of information by geographic area?

Which of the following is a criterion for determining whether an operating segment is separately reportable?

What is the major objective of segment reporting?

Which of the segments are separately reportable?

Which tests must a company use to determine which operating segments require separate disclosure?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters