Exam 8: Segment and Interim Reporting

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

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

Which items of information are required to be included in interim reports for each operating segment?

What is meant by the term: disaggregated financial information?

Schilling, Inc. has three operating segments with the following information: What is the minimum amount of revenue an operating segment must have to be considered a reportable segment?

According to U.S. GAAP, how should common costs be allocated to individual segments to determine segment profit or loss?

Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2013 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2013, 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, 2013?

Kurves Corp. had six different operating segments reporting the following operating profit and loss figures: Which one of the following statements is true?

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

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

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?

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?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: According to the revenue test, which segments would require disaggregation?

Which of the following must be disclosed by a geographic segment according to U.S. GAAP?

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?

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

Which two items of information must be reported for (1) the domestic country, (2) all foreign countries in which the enterprise derives revenues or holds assets, and (3) each foreign country in which a material amount of revenues is earned?

Which of the following costs require similar treatment to Property Tax Expense in an interim financial report? 1) Annual major repairs. 2) Advertising expense. 3) Bonus expense, if estimable. 4) Quantity discounts based on annual sales.

How should a change from one generally accepted accounting principle to another accepted principle be handled in a third-quarter income statement?

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