Question 1

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 2

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 3

Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except:

Accepted Answer

A)  Revenues from external customers. 
B)  Discontinued operations. 
C)  Cost of goods sold. 
D)  Depreciation expense. 
E)  Intersegment revenues. 
A)  Revenues from external customers. 
B)  Discontinued operations. 
C)  Cost of goods sold. 
D)  Depreciation expense. 
E)  Intersegment revenues.

Question 4

Which operating segments are separately reportable under the revenues 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 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 operating segment disclosures is not required by U.S. GAAP?

Accepted Answer

A)  Interest expense. 
B)  Intersegment sales. 
C)  Extraordinary items. 
D)  Discontinued operations. 
E)  Liabilities. 
A)  Interest expense. 
B)  Intersegment sales. 
C)  Extraordinary items. 
D)  Discontinued operations. 
E)  Liabilities.

Question 7

On February 23, 2011, Cleveland, Inc., paid property taxes of $300,000 for the calendar year 2011.
-How much of this expense should be included in Cleveland's net income for the quarter ending March 31, 2011?

Accepted Answer

$75,000 [$

Question 8

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 9

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 10

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

Accepted Answer

A)  $769,263. 
B)  $812,000. 
C)  $854,737. 
D)  $897,000. 
E)  $833,368. 
A)  $769,263. 
B)  $812,000. 
C)  $854,737. 
D)  $897,000. 
E)  $833,368.

Question 11

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 12

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 13

The Fratilo Co. had three operating segments with the following information: $$\begin{array} { | l | r | r | c | } 
\hline & \text { Pens } & \underline { \text { Pencils } } & \underline { \text { Erasers } } \
\hline \text { Sales to outsiders } & \$ 11,200 & \$ 5,600 & \$ 8,400 \
\hline \text { Intersegment revenues } & 840 & 1,400 & 1,960 \
\hline
\end{array}$$ In addition, revenues generated at corporate headquarters are $1,400.
-The Rivers Co. had four separate operating segments:  
What amount of revenues must be generated from one customer before that party must be identified as a major customer?

Accepted Answer

A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560. 
A)  $57,680. 
B)  $64,960. 
C)  $52,640. 
D)  $78,960. 
E)  $63,560.

For purposes of the profit or loss test, segment C's operating profit or (loss) is

Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except:

Which operating segments are separately reportable under the revenues test?

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 operating segment disclosures is not required by U.S. GAAP?

On February 23, 2011, Cleveland, Inc., paid property taxes of $300,000 for the calendar year 2011. -How much of this expense should be included in Cleveland's net income for the quarter ending March 31, 2011?

Which operating segments are separately reportable under the operating profit or loss test?

Which operating segments are separately reportable under the assets test?

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

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

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?

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

For purposes of the profit or loss test, segment C's operating profit or (loss) is

Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except:

Which operating segments are separately reportable under the revenues test?

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 operating segment disclosures is not required by U.S. GAAP?

On February 23, 2011, Cleveland, Inc., paid property taxes of $300,000 for the calendar year 2011. -How much of this expense should be included in Cleveland's net income for the quarter ending March 31, 2011?

Which operating segments are separately reportable under the operating profit or loss test?

Which operating segments are separately reportable under the assets test?

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

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

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?

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