Question 1

REFERENCE: Ref.08_05
Schilling,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $5,000.
-According to the revenues test,which segment(s)are separately reportable?

Accepted Answer

A) Silver only. 
B) Crystal and Silver. 
C) China and Crystal. 
D) China and Silver. 
E) China,Crystal,and Silver.

Question 2

According to SFAS 131,how should common costs be allocated to individual segments to determine segment profit or loss?

Accepted Answer

The answer of According to SFAS 131,how should common costs...

Question 3

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.

Question 4

REFERENCE: Ref.08_11
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).
  In addition,Faru Co.had $1,625,000 in common expenses that are not allocated to the various segments.
-Prepare the asset test to determine which of these segments was separately reportable.

Accepted Answer

The answer of REFERENCE: Ref.08_11
Faru Co.identified five industry segments: (1)plastics,...

Question 5

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

Accepted Answer

The answer of Why are quarterly financial statements required to...

Question 6

REFERENCE: Ref.08_04
Dean Hardware,Inc.is comprised of five operating segments.Information about each of these segments is as follows (in thousands): 
-What is the total amount of revenues in applying the revenue test?

Accepted Answer

A) $794. 
B) $808. 
C) $892. 
D) $906. 
E) $934.

Question 7

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-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.

Question 8

Coulanger Corp.identified four operating segments: A,B,C,and D.Segment A met the revenue test for identifying reportable segments while Segment C met the revenue test,profit or loss test,and asset test.Segment B and Segment D did not meet any of these tests.Which of these segments must be disclosed separately?

Accepted Answer

A) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 9

REFERENCE: Ref.08_14
Harrison Company,Inc.began operations on January 1,2008,and applied the LIFO method for inventory valuation.On June 10,2009,Harrison adopted the FIFO method of accounting for inventory.Additional information is as follows:
  The LIFO method was applied during the first quarter of 2009 and the FIFO method was applied during the second quarter of 2009 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.
-Compute the after-tax effect of Harrison's change in inventory method.

Accepted Answer

The answer of REFERENCE: Ref.08_14
Harrison Company,Inc.began operations on January 1,2008,and...

Question 10

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-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.

Question 11

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.

Question 12

According to SFAS 131,which of the following would be an acceptable grouping for providing information by geographic area for a United States company?

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.

Question 13

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) Entry A. 
B) Entry B. 
C) Entry C. 
D) Entry D. 
E) Entry E.

Question 14

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.

Question 15

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-Which of the following statements is true according to SFAS 131?

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.

Question 16

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-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.

Question 17

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.

Question 18

Kaycee Corporation's revenues for the year ended December 31,2008,were as follows:
Consolidated Revenue per the Income Statement: $1,200,000
Upstream Intersegment Sales: $180,000
Downstream Intersegment Sales: $60,000
For purposes of the Revenue Test,what amount will be used as the benchmark for determining whether a segment is reportable?

Accepted Answer

A) $24,000. 
B) $120,000. 
C) $138,000. 
D) $144,000. 
E) $0

Question 19

What information does SFAS 131 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.

Question 20

REFERENCE: Ref.08_14
Harrison Company,Inc.began operations on January 1,2008,and applied the LIFO method for inventory valuation.On June 10,2009,Harrison adopted the FIFO method of accounting for inventory.Additional information is as follows:
  The LIFO method was applied during the first quarter of 2009 and the FIFO method was applied during the second quarter of 2009 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 30,2008 and 2009.

Accepted Answer

The answer of REFERENCE: Ref.08_14
Harrison Company,Inc.began operations on January 1,2008,and...

Exam 8: Segment and Interim Reporting

REFERENCE: Ref.08_05 Schilling,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $5,000. -According to the revenues test,which segment(s) are separately reportable?