Question 1

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 2

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 3

The following information for Urbanski Corporation relates to the three months ending June 30, 2011:
Answer:   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 4

Kurves Corp. had six different operating segments reporting the following operating profit and loss figures: $\begin{array}{cc}&\text { Profit or }\
\text { Segment }&\text { (Loss) }\
\mathrm{A} & \$ 112,000 \
\mathrm{~B} & (196,000) \
\mathrm{C} & 1,316,000 \
\mathrm{D} & (616,000) \
\mathrm{E} & (126,000) \
\mathrm{F} & (140,000)
\end{array}$
Which one of the following statements is true?

Accepted Answer

A)  Segment A is a reportable segment based on this test. 
B)  Segment B is not a reportable segment based on this test. 
C)  Segment E is a reportable segment based on this test. 
D)  Segment C is not a reportable segment based on this test. 
E)  Segment D is a reportable segment based on this test. 
A)  Segment A is a reportable segment based on this test. 
B)  Segment B is not a reportable segment based on this test. 
C)  Segment E is a reportable segment based on this test. 
D)  Segment C is not a reportable segment based on this test. 
E)  Segment D is a reportable segment based on this test.

Question 5

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 6

Which of the following items of information are required to be included in interim reports for each operating segment?
(I) Revenues from external customers
(II) Segment profit or loss
(III) Reconciliation of segment profit or loss to the enterprise's total income before taxes
(IV) Intersegment revenues

Accepted Answer

A)  I and III only. 
B)  I and II only. 
C)  I, II and III. 
D)  II and III only. 
E)  I, II, III, and IV. 
A)  I and III only. 
B)  I and II only. 
C)  I, II and III. 
D)  II and III only. 
E)  I, II, III, and IV.

Question 7

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 8

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

Accepted Answer

A)  $9,450,000. 
B)  $8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000. 
A)  $9,450,000. 
B)  $8,624,272. 
C)  $10,643,000. 
D)  $12,936,408. 
E)  $10,413,000.

Question 9

Harrison Company, Inc. began operations on January 1, 2010, and applied the LIFO method for inventory valuation. On June 10, 2011, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:   The LIFO method was applied during the first quarter of 2011 and the FIFO method was applied during the second quarter of 2011 in computing income, above. Harrison's effective income tax rate is 40 percent. Harrison has 500,000 shares of common stock outstanding at all times.
-Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2010 and 2011.

Accepted Answer

Net Income and Earni

Question 10

The hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2011:
For purposes of the revenue test, what amount will be used as total revenues of the hardware operating segment?

Accepted Answer

A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000. 
A)  $417,000. 
B)  $440,000. 
C)  $424,000. 
D)  $460,000. 
E)  $480,000.

Question 11

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 12

Which items of information are required to be included in interim reports for each operating segment?

Accepted Answer

The items of information that are requir

Question 13

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 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 14

Provo, Inc. has an estimated annual tax rate of 35 percent in the first quarter of 2011. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2011, Provo expects the annual tax rate to be 32 percent because of anticipated tax credits. Pretax income for the second quarter was $350,000. Assume no items in either quarter requiring the net-of-tax presentation.
-How much income tax expense is recognized in the first quarter of 2011?

Accepted Answer

A)  $0. 
B)  $26,250. 
C)  $96,000. 
D)  $105,000. 
E)  $112,000. 
A)  $0. 
B)  $26,250. 
C)  $96,000. 
D)  $105,000. 
E)  $112,000.

Question 15

Betsy Kirkland, Inc. incurred a flood loss during the first quarter of 2011 that is deemed both unusual and infrequent. The loss is considered immaterial to the twelve-month period, but is material in amount relative to the first quarter. The proper accounting treatment in the first quarter interim statement is to:

Accepted Answer

A)  Ignore the loss. 
B)  Record the loss in the first quarter as an extraordinary loss, net of income taxes. 
C)  Record one-fourth of the loss in the first quarter as an extraordinary loss, net of income taxes. 
D)  Ignore the loss in the first quarter, and record it in the annual statement only. 
E)  Record the loss in the first quarter, but not as an extraordinary loss, and disclose the loss in a separate note or in the income statement as a separate line item. 
A)  Ignore the loss. 
B)  Record the loss in the first quarter as an extraordinary loss, net of income taxes. 
C)  Record one-fourth of the loss in the first quarter as an extraordinary loss, net of income taxes. 
D)  Ignore the loss in the first quarter, and record it in the annual statement only. 
E)  Record the loss in the first quarter, but not as an extraordinary loss, and disclose the loss in a separate note or in the income statement as a separate line item.

Question 16

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 17

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 18

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 19

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 20

For companies that provide quarterly reports, how is the fourth quarter reported?

Accepted Answer

A)  Every company that reports for the first three quarters must also publish a fourth-quarter report. 
B)  No fourth-quarter report is required. 
C)  No company may publish a fourth-quarter report. 
D)  The SEC requires selected quarterly financial data to be reported separately as a fourth-quarter report. 
E)  When fourth-quarter financial statements are provided, special accounting items should be disclosed in the annual financial statements. 
A)  Every company that reports for the first three quarters must also publish a fourth-quarter report. 
B)  No fourth-quarter report is required. 
C)  No company may publish a fourth-quarter report. 
D)  The SEC requires selected quarterly financial data to be reported separately as a fourth-quarter report. 
E)  When fourth-quarter financial statements are provided, special accounting items should be disclosed in the annual financial statements.

Which operating segments are reportable under the asset test?

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

Kurves Corp. had six different operating segments reporting the following operating profit and loss figures: Profit or Segment (Loss) \ 112,000 (196,000) 1,316,000 (616,000) (126,000) (140,000) Which one of the following statements is true?

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

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.

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

The hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2011: For purposes of the revenue test, what amount will be used as total revenues of the hardware operating segment?

Which items of information are required to be included in interim reports for each operating segment?

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 revenue test?

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?

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

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

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

For companies that provide quarterly reports, how is the fourth quarter reported?

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 Flo

Consolidated Financial Statements - Ownership Patterns and Income

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

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

Which operating segments are reportable under the asset test?

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

Kurves Corp. had six different operating segments reporting the following operating profit and loss figures: Profit or Segment (Loss) \ 112,000 (196,000) 1,316,000 (616,000) (126,000) (140,000) Which one of the following statements is true?

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

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.

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

The hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2011: For purposes of the revenue test, what amount will be used as total revenues of the hardware operating segment?

Which items of information are required to be included in interim reports for each operating segment?

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 revenue test?

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?

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

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

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

For companies that provide quarterly reports, how is the fourth quarter reported?

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 Flo

Consolidated Financial Statements - Ownership Patterns and Income

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operations

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