Question 1

How should revenues be recognized in interim periods?

Accepted Answer

A)  In the same way as they are recognized on an annual basis. 
B)  On the cash basis. 
C)  On an annualized basis. 
D)  On a seasonal basis. 
E)  There are no revenues recognized in interim periods. 
A)  In the same way as they are recognized on an annual basis. 
B)  On the cash basis. 
C)  On an annualized basis. 
D)  On a seasonal basis. 
E)  There are no revenues recognized in interim periods.

Question 2

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?

Accepted Answer

A)  $12.5. 
B)  $15.2. 
C)  $17.2. 
D)  $18.4. 
E)  $19.8. 
A)  $12.5. 
B)  $15.2. 
C)  $17.2. 
D)  $18.4. 
E)  $19.8.

Question 3

Peterson Corporation 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?

Accepted Answer

A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400. 
A)  $3,900. 
B)  $4,000. 
C)  $4,100. 
D)  $4,200. 
E)  $4,400.

Question 4

Which of the following statements is true according to U.S. GAAP regarding segment or enterprise-wide disclosure?

Accepted Answer

A)  A reconciliation of segment assets to consolidated assets is required. 
B)  Segment information does not have to be in accordance with generally accepted accounting principles. 
C)  Disclosure of a major customer's identity is required. 
D)  Geographic area information must be disclosed in interim financial statements. 
E)  A company comprised of only one operating segment does not have to report geographic area information. 
A)  A reconciliation of segment assets to consolidated assets is required. 
B)  Segment information does not have to be in accordance with generally accepted accounting principles. 
C)  Disclosure of a major customer's identity is required. 
D)  Geographic area information must be disclosed in interim financial statements. 
E)  A company comprised of only one operating segment does not have to report geographic area information.

Question 5

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

Accepted Answer

1) If an operating segment does not pass

Question 6

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

Accepted Answer

A)  Income tax expense. 
B)  Seasonal items. 
C)  Change in accounting principle. 
D)  Property tax expense. 
E)  Extraordinary gains. 
A)  Income tax expense. 
B)  Seasonal items. 
C)  Change in accounting principle. 
D)  Property tax expense. 
E)  Extraordinary gains.

Question 7

Elektronix, Inc. has three operating segments with the following information:   Which operating segments are separately reportable under the assets 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 8

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 revenue test?

Accepted Answer

A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware. 
A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware.

Question 9

Elektronix, Inc. has three operating segments with the following information:   What is the operating profit or loss for the VCRs segment?

Accepted Answer

A)  $121,000 profit. 
B)  $121,000 loss. 
C)  $124,000 profit. 
D)  $124,000 loss. 
E)  $500,000 profit. 
A)  $121,000 profit. 
B)  $121,000 loss. 
C)  $124,000 profit. 
D)  $124,000 loss. 
E)  $500,000 profit.

Question 10

Elektronix, Inc. has three operating segments with the following information:   Which operating segments are separately reportable under the operating profit or loss 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 11

What related items need to be disclosed in regard to total segment assets?

Accepted Answer

The related items in regard to

Question 12

Which of the following statements is true regarding the determination of operating segments in order to decide which segments will be separately reported?

Accepted Answer

A)  An operating segment is a component of an enterprise that engages in business activities from which it only earns revenues. 
B)  The operating results of an operating segment are reviewed regularly by the corporate controller to assess performance. 
C)  There is integral financial information available for each operating segment. 
D)  An organizational unit can be an operating segment if all of its revenues or expenses result from transactions with other segments. 
E)  All parts of a company must be included in some operating segment. 
A)  An operating segment is a component of an enterprise that engages in business activities from which it only earns revenues. 
B)  The operating results of an operating segment are reviewed regularly by the corporate controller to assess performance. 
C)  There is integral financial information available for each operating segment. 
D)  An organizational unit can be an operating segment if all of its revenues or expenses result from transactions with other segments. 
E)  All parts of a company must be included in some operating segment.

Question 13

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements?
(I)) Revenue from external customers.
(II)) Total Segment Assets
(III.) Revenues from foreign customers, identified by country.

Accepted Answer

A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments. 
A)  I, II, and III 
B)  I and III only 
C)  II and III only 
D)  I and II only 
E)  There is no requirement of information to disclose for operating segments.

Question 14

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

Accepted Answer

A)  Factors used to identify operating segments. 
B)  Products and services from which each segment derives its revenues. 
C)  Revenues from external customers. 
D)  Factors used to allocate company-wide expenses. 
E)  Revenues from transactions with other operating segments. 
A)  Factors used to identify operating segments. 
B)  Products and services from which each segment derives its revenues. 
C)  Revenues from external customers. 
D)  Factors used to allocate company-wide expenses. 
E)  Revenues from transactions with other operating segments.

Question 15

Which of the following is not a required disclosure in an interim financial report?

Accepted Answer

A)  Net income. 
B)  Earnings per share. 
C)  Gross profit. 
D)  Significant changes in estimates or provisions for income taxes. 
E)  Disposal of a segment, net of income taxes. 
A)  Net income. 
B)  Earnings per share. 
C)  Gross profit. 
D)  Significant changes in estimates or provisions for income taxes. 
E)  Disposal of a segment, net of income taxes.

Question 16

Which of the following statements is false concerning the number of operating segments that should be disclosed?

Accepted Answer

A)  At least 75 percent of total company sales made to outsiders should be presented. 
B)  Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year. 
C)  If the 75 percent rule is not met by the results of applying all three reporting tests, additional segments must be disclosed separately despite their failure to satisfy even one of the three quantitative thresholds. 
D)  If an operating segment qualifies for disclosure in the current year, prior period segment data presented for comparative purposes must be restated to reflect the newly reportable segment as a separate segment. 
E)  The practical limit to the number of operating segments is 10. 
A)  At least 75 percent of total company sales made to outsiders should be presented. 
B)  Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year. 
C)  If the 75 percent rule is not met by the results of applying all three reporting tests, additional segments must be disclosed separately despite their failure to satisfy even one of the three quantitative thresholds. 
D)  If an operating segment qualifies for disclosure in the current year, prior period segment data presented for comparative purposes must be restated to reflect the newly reportable segment as a separate segment. 
E)  The practical limit to the number of operating segments is 10.

How should revenues be recognized in interim periods?

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?

Peterson Corporation 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?

Which of the following statements is true according to U.S. GAAP regarding segment or enterprise-wide disclosure?

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

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

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

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 revenue test?

Elektronix, Inc. has three operating segments with the following information: What is the operating profit or loss for the VCRs segment?

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

What related items need to be disclosed in regard to total segment assets?

Which of the following statements is true regarding the determination of operating segments in order to decide which segments will be separately reported?

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I)) Revenue from external customers. (II)) Total Segment Assets (III.) Revenues from foreign customers, identified by country.

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

Which of the following is not a required disclosure in an interim financial report?

Which of the following statements is false concerning the number of operating segments that should be disclosed?

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

How should revenues be recognized in interim periods?

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?

Peterson Corporation 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?

Which of the following statements is true according to U.S. GAAP regarding segment or enterprise-wide disclosure?

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

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

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

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 revenue test?

Elektronix, Inc. has three operating segments with the following information: What is the operating profit or loss for the VCRs segment?

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

What related items need to be disclosed in regard to total segment assets?

Which of the following statements is true regarding the determination of operating segments in order to decide which segments will be separately reported?

Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I)) Revenue from external customers. (II)) Total Segment Assets (III.) Revenues from foreign customers, identified by country.

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

Which of the following is not a required disclosure in an interim financial report?

Which of the following statements is false concerning the number of operating segments that should be disclosed?

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