Question 1

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

Accepted Answer

A)  Depreciation expense. 
B)  Amortization expense. 
C)  Research and development expense. 
D)  Interest expense. 
E)  Interest income. 
A)  Depreciation expense. 
B)  Amortization expense. 
C)  Research and development expense. 
D)  Interest expense. 
E)  Interest income. C

Question 2

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

Accepted Answer

A)  A condensed statement of cash flows. 
B)  A condensed statement of financial position. 
C)  A condensed statement of stockholders' equity. 
D)  A condensed statement of net income and comprehensive income. 
E)  Accrual of income tax expense at the end of each interim period. 
A)  A condensed statement of cash flows. 
B)  A condensed statement of financial position. 
C)  A condensed statement of stockholders' equity. 
D)  A condensed statement of net income and comprehensive income. 
E)  Accrual of income tax expense at the end of each interim period. C

Question 3

The following information for Urbanski Corporation relates to the three months ending June 30, 2011:   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 Sales and Cost-of-Goods-Sold   Excess of replacement cost over historical cost for beginning inventory liquidated:
[($18 - $10) x 5,000 units]

Question 4

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?

Accepted Answer

A)  $12,000. 
B)  $15,000. 
C)  $15,500. 
D)  $16,200. 
E)  $16,700. 
A)  $12,000. 
B)  $15,000. 
C)  $15,500. 
D)  $16,200. 
E)  $16,700.

Question 5

Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory. The amount of gross profit for the first quarter is:

Accepted Answer

A)  $83,000 
B)  $87,000 
C)  $90,000 
D)  $221,000 
E)  $250,000 
A)  $83,000 
B)  $87,000 
C)  $90,000 
D)  $221,000 
E)  $250,000

Question 6

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.

Accepted Answer

@#IMG-DLM& h. There are a sufficient number of rep

Question 7

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?

Accepted Answer

A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer. 
A)  The geographical location of the operations. 
B)  The nature of the production process. 
C)  The distribution methods. 
D)  The nature of the regulatory environment, if applicable. 
E)  The type or class of customer.

Question 8

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

Accepted Answer

A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries. 
A)  United States, All Other Countries. 
B)  United States, Europe, Taiwan. 
C)  United States, Asia, Germany. 
D)  United States, Central America, Mexico, Germany. 
E)  South America, Spain, All Other Countries.

Question 9

The following items are required to be disclosed for each operating segment except:

Accepted Answer

A)  Factors used to allocate company-wide pension expense. 
B)  Revenues from transactions with other operating segments. 
C)  Interest revenue and interest expense. 
D)  Depreciation, depletion, and amortization expense. 
E)  Revenues from external customers. 
A)  Factors used to allocate company-wide pension expense. 
B)  Revenues from transactions with other operating segments. 
C)  Interest revenue and interest expense. 
D)  Depreciation, depletion, and amortization expense. 
E)  Revenues from external customers.

Question 10

Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory. What is the correct journal entry to record cost of goods sold at the end of the first quarter?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
E)  Option E

Question 11

What are the two approaches that can be followed in preparing interim reports?

Accepted Answer

A)  Indiscrete and terminal. 
B)  Discrete and terminal. 
C)  Metric and integral. 
D)  Discrete and integral. 
E)  Discrete and metric. 
A)  Indiscrete and terminal. 
B)  Discrete and terminal. 
C)  Metric and integral. 
D)  Discrete and integral. 
E)  Discrete and metric.

Question 12

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.

Accepted Answer

A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4 
A)  1 and 2 
B)  1, 2, and 3 
C)  1, 2, and 4 
D)  2, 3, and 4 
E)  1, 2, 3, and 4

Question 13

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?

Accepted Answer

The two items of inf

Question 14

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

Accepted Answer

A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers. 
A)  Operating profit or loss. 
B)  Gross profit. 
C)  Total assets. 
D)  Revenues from external customers. 
E)  Revenues from internal customers.

Question 15

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands; Intersegment loans are receivables):   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 16

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2011. 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 2011 and that $400,000 net income is earned during the second quarter, how much is reported as net income for the second quarter of 2011?

Accepted Answer

A)  $400,000. 
B)  $405,200. 
C)  $427,950. 
D)  $894,850. 
E)  $905,200. 
A)  $400,000. 
B)  $405,200. 
C)  $427,950. 
D)  $894,850. 
E)  $905,200.

Question 17

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

Accepted Answer

The related items in regard to

Question 18

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.

Question 19

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 20

Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2011 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2011, 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 does not expect to replace the units of beginning inventory sold, what is the amount of cost of goods sold for the quarter ended March 31, 2011?

Accepted Answer

$9,625 [(2

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

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

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?

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?

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

The following items are required to be disclosed for each operating segment except:

What are the two approaches that can be followed in preparing interim reports?

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.

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 must be disclosed by a geographic segment according to U.S. GAAP?

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

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

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

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

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 - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of 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 for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 8: Segment and Interim Reporting

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

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

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?

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?

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

The following items are required to be disclosed for each operating segment except:

What are the two approaches that can be followed in preparing interim reports?

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.

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 must be disclosed by a geographic segment according to U.S. GAAP?

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

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

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

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

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 - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of 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 for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters