Question 1

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

Accepted Answer

A)  Bonus expense. 
B)  Extraordinary losses. 
C)  Cash basis accounting. 
D)  Extraordinary gains. 
E)  Change in accounting principle. 
A)  Bonus expense. 
B)  Extraordinary losses. 
C)  Cash basis accounting. 
D)  Extraordinary gains. 
E)  Change in accounting principle.

Question 2

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

Accepted Answer

Publicly traded U.S. companies

Question 3

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

Accepted Answer

U.S. GAAP does not require common costs

Question 4

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2011:   What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Accepted Answer

A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658. 
A)  $4,343,684. 
B)  $4,826,316. 
C)  $5,067,632. 
D)  $4,585,000. 
E)  $4,705,658.

Question 5

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

Accepted Answer

A)  The products sold by each segment are produced in the same plant. 
B)  Both segments have several customers in common. 
C)  The segments may sell different products, but they have a similar production process. 
D)  Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws. 
E)  Both segments are owned by the same parent company. 
A)  The products sold by each segment are produced in the same plant. 
B)  Both segments have several customers in common. 
C)  The segments may sell different products, but they have a similar production process. 
D)  Both segments are required to adhere to U.S. Department of Labor regulations regarding immigration laws. 
E)  Both segments are owned by the same parent company.

Question 6

What is the purpose of the U.S. GAAP seventy-five percent requirement for industry segment disclosure?

Accepted Answer

A substantial portion of the company's o

Question 7

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?

Accepted Answer

A)  $124,000. 
B)  $127,600. 
C)  $100,000. 
D)  $130,000. 
E)  $140,000. 
A)  $124,000. 
B)  $127,600. 
C)  $100,000. 
D)  $130,000. 
E)  $140,000.

Question 8

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses:   When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

Accepted Answer

A)  $1,670,000. 
B)  $12,525,000. 
C)  $15,487,500. 
D)  $16,700,000. 
E)  $20,650,000. 
A)  $1,670,000. 
B)  $12,525,000. 
C)  $15,487,500. 
D)  $16,700,000. 
E)  $20,650,000.

Question 9

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 10

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.
Compute cost of goods sold and gross profit for the quarter ending June 30, 2011.

Accepted Answer

Determination of Cos

Question 11

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

Accepted Answer

A)  $1,300,000. 
B)  $700,000. 
C)  $2,000,000. 
D)  $200,000. 
E)  $(200,000.) 
A)  $1,300,000. 
B)  $700,000. 
C)  $2,000,000. 
D)  $200,000. 
E)  $(200,000.)

Question 12

Faru Co. identified five industry segments: (1) plastics, (2) metals, (3) lumber, (4) paper, and (5) finance. Each of these segments had been consolidated appropriately by the company in producing its annual financial statements. Information describing each segment is presented below (in thousands).   Prepare the revenue test and determine which of these segments was separately reportable.

Accepted Answer

Revenues include sales to outs

Question 13

Which of the segments are separately reportable?

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.

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

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

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

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2011: What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

What is the purpose of the U.S. GAAP seventy-five percent requirement for industry segment disclosure?

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?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

How should revenues be recognized in interim periods?

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

Which of the segments are separately reportable?

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

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

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

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

Retro Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2011: What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

When defining a reportable segment, which of the following conditions would be sufficient to allow a company to combine two operating segments for purposes of testing?

What is the purpose of the U.S. GAAP seventy-five percent requirement for industry segment disclosure?

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?

Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments?

How should revenues be recognized in interim periods?

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

Which of the segments are separately reportable?

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