Exam 8: Segment and Interim Reporting

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

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding. The following additional information is available: Assuming Baker makes the change in the first quarter of 2013, how much is reported as net income for the first quarter of 2013?

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?

Peterson Corporation has three operating segments with the following information: What amount of revenues must be generated from one customer before that party must be identified as a major customer?

What information does U.S. GAAP require to be disclosed for a major customer?

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

Describe the test to determine whether a sufficient number of operating segments are disclosed.

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?

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding. The following additional information is available: Assuming Baker makes the change in the first quarter of 2013, compute net income per common share.

The Fratilo Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,400. What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Which of the following is false with regard to accounting standards for segment reporting according to International Financial Reporting Standards (IFRS) and U.S. GAAP?

Which of the following would be an acceptable grouping for a U.S. company to provide information by geographic area?

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 profit or loss test?

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2013. Baker has an effective income tax rate of 30 percent and 100,000 shares of common stock issued and outstanding. The following additional information is available: Assuming Baker makes the change in the first quarter of 2012, how much is reported as net income for the first quarter of 2012?

Blanton Corporation is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Required: (a.) Which operating segments are reportable under the revenue test? (b.) What is the total amount of revenues in applying the revenues test? (c.) Which operating segments are reportable under the profit or loss test? (d.) In applying the profit or loss test, what is the minimum amount an operating segment must have in order to meet the profit or loss test for a reportable segment? (e.) Which operating segments are reportable under the asset test? (f.) 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? (g.) Which operating segments are reportable? (h.) According to the test results for reportable segments, is there a sufficient number of reported segments or should any additional segments also be disclosed? Explain the reason for your conclusion.

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: For purposes of the profit or loss test, segment C's operating profit or (loss) is

Vapor Corporation has a fan products operating segment. Which of the following items does Vapor not have to report for this segment?

Which of the following statements is true?

According to International Financial Reporting Standards (IFRS), all of the following are part of minimum components of interim financial reporting except:

What is the appropriate treatment in an interim financial report for a LIFO liquidation?