Question 1

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 2

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?

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 3

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 4

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

Accepted Answer

A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Extraordinary items. 
D)  Gains on sales of major equipment. 
E)  Earnings per share. 
A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Extraordinary items. 
D)  Gains on sales of major equipment. 
E)  Earnings per share.

Question 5

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 6

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

Accepted Answer

A)  LIFO liquidations expected to be replaced by the end of the year are accounted for in cost of goods sold at expected replacement cost rather than original LIFO cost. 
B)  Lower-of-cost-or-market adjustments are not made for the interim period if they are expected to reverse by the end of the year. 
C)  Variances in a standard costing system are reported at the end of the interim period unless they are expected to be absorbed by year-end. 
D)  FIFO is remeasured using the LIFO method in an interim financial statement. 
E)  LIFO liquidations not expected to be replaced by the end of the year are reflected in cost of goods sold at original LIFO cost. 
A)  LIFO liquidations expected to be replaced by the end of the year are accounted for in cost of goods sold at expected replacement cost rather than original LIFO cost. 
B)  Lower-of-cost-or-market adjustments are not made for the interim period if they are expected to reverse by the end of the year. 
C)  Variances in a standard costing system are reported at the end of the interim period unless they are expected to be absorbed by year-end. 
D)  FIFO is remeasured using the LIFO method in an interim financial statement. 
E)  LIFO liquidations not expected to be replaced by the end of the year are reflected in cost of goods sold at original LIFO cost.

Question 7

The Fratilo Co. had three operating segments with the following information:   In addition, revenues generated at corporate headquarters are $1,400. Combined segment revenues are calculated to be

Accepted Answer

A)  $29,400. 
B)  $25,200. 
C)  $26,600. 
D)  $28,000. 
E)  $27,300. 
A)  $29,400. 
B)  $25,200. 
C)  $26,600. 
D)  $28,000. 
E)  $27,300.

Question 8

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 9

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

Accepted Answer

A)  The identity of the customer. 
B)  The operating segment reporting sales to the customer. 
C)  The geographic area of the customer. 
D)  The percentage of sales derived from the customer. 
E)  The length of time the customer has been a customer of the company. 
A)  The identity of the customer. 
B)  The operating segment reporting sales to the customer. 
C)  The geographic area of the customer. 
D)  The percentage of sales derived from the customer. 
E)  The length of time the customer has been a customer of the company.

Question 10

What is meant by the term: disaggregated financial information?

Accepted Answer

Disaggregated financial inform

Question 11

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.

Question 12

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

Accepted Answer

The revenues and expenses included in se

Question 13

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?

Accepted Answer

A)  $2,730. 
B)  $2,660. 
C)  $2,800. 
D)  $2,940. 
E)  $2,520. 
A)  $2,730. 
B)  $2,660. 
C)  $2,800. 
D)  $2,940. 
E)  $2,520.

Question 14

How should seasonal revenues be reported in an interim financial statement?

Accepted Answer

A)  The seasonal nature should be disclosed, and a pro forma report for the next 12-month period should supplement the interim report. 
B)  The seasonal nature should be disclosed but no other reports should accompany the interim report. 
C)  The seasonal nature should be disclosed, and a supplemental report for the 12-month period ended at the interim date should supplement the interim report. 
D)  The financial statements should be adjusted to reflect the assumption that no seasonal revenues could be earned. 
E)  Seasonal revenues have no particular reporting requirement. 
A)  The seasonal nature should be disclosed, and a pro forma report for the next 12-month period should supplement the interim report. 
B)  The seasonal nature should be disclosed but no other reports should accompany the interim report. 
C)  The seasonal nature should be disclosed, and a supplemental report for the 12-month period ended at the interim date should supplement the interim report. 
D)  The financial statements should be adjusted to reflect the assumption that no seasonal revenues could be earned. 
E)  Seasonal revenues have no particular reporting requirement.

Question 15

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, how much is reported as net income for the first quarter of 2011?

Accepted Answer

A)  $492,000. 
B)  $494,800. 
C)  $500,000. 
D)  $505,200. 
E)  $527,950. 
A)  $492,000. 
B)  $494,800. 
C)  $500,000. 
D)  $505,200. 
E)  $527,950.

Question 16

According to U.S. GAAP, what general information about an operating segment needs to be disclosed?

Accepted Answer

The general information about an operati

Question 17

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?

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 18

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

Accepted Answer

A)  $1,400,000. 
B)  $2,500,000. 
C)  $4,100,000. 
D)  $5,000,000. 
E)  $25,000,000. 
A)  $1,400,000. 
B)  $2,500,000. 
C)  $4,100,000. 
D)  $5,000,000. 
E)  $25,000,000.

Question 19

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands; Intersegment loans are receivables):   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 20

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.

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 a criterion for determining whether an operating segment is separately reportable?

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

The Fratilo Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,400. Combined segment revenues are calculated to be

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

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

What is meant by the term: disaggregated financial information?

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

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

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?

How should seasonal revenues be reported in an interim financial statement?

According to U.S. GAAP, what general information about an operating segment needs to be disclosed?

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?

Elektronix, Inc. has three operating segments with the following information: What is the minimum amount of assets 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?

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

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 a criterion for determining whether an operating segment is separately reportable?

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

The Fratilo Co. had three operating segments with the following information: In addition, revenues generated at corporate headquarters are $1,400. Combined segment revenues are calculated to be

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

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

What is meant by the term: disaggregated financial information?

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

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

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?

How should seasonal revenues be reported in an interim financial statement?

According to U.S. GAAP, what general information about an operating segment needs to be disclosed?

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?

Elektronix, Inc. has three operating segments with the following information: What is the minimum amount of assets 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?

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