ADV ACCT - In class
E) DVDs, VCRs, and MP3s.
. Which of the segments are separately reportable? A) DVDs only. B) DVDs and MP3s. C) DVDs and VCRs. D) VCRs and MP3s. E) DVDs, VCRs, and MP3s.
D) $505,200.
Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2018. 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 2018, how much is reported as net income for the first quarter of 2018? A) $492,000. B) $494,800. C) $500,000. D) $505,200. E) $527,950.
A) Ignore the loss.
Betsy Kirkland, Inc. incurred a flood loss during the first quarter of 2018 that is deemed both unusual and not expected to recur again in the near future. 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: A) Ignore the loss. B) Record the loss in the first quarter as an unusual loss, net of income taxes. C) Record one-fourth of the loss in the first quarter as an unusual 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 unusual loss, and disclose the loss in a separate note or in the income statement as a separate line item.
E) An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.
Which of the following is not true for an operating segment according to U.S. GAAP? A) Discrete financial information generated by the internal accounting system is available. B) The segment recognizes revenues and incurs expenses. C) The segment is regularly reviewed by a chief decision maker to assess performance decisions. D) The segment is regularly reviewed by a chief decision maker to make resource allocations. E) An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.
E) Discontinued operations.
Which of the following is reported for interim financial reports using the discrete approach? A) Income tax expense. B) Seasonal items. C) Change in accounting principle. D) Property tax expense. E) Discontinued operations.
A) Bonus expense.
Which of the following is reported for interim financial reports using the integral approach? A) Bonus expense. B) Gross profit. C) Cash basis accounting. D) Current market value. E) Segment level management compensation.
E) Liabilities.
Which of the following operating segment disclosures is not required by U.S. GAAP? A) Interest expense. B) Intersegment sales. C) Unusual items. D) Depletion. E) Liabilities.
A) $29,400.
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 A) $29,400. B) $25,200. C) $26,600. D) $28,000. E) $27,300.
C) $52,640. Total External Sales Revenue $172,200 + $113,400 + $133,000 + $107,800 = $526,400 × 10% = $52,640
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? A) $57,680. B) $64,960. C) $52,640. D) $78,960. E) $63,560.
A) $ 83,000
The amount of gross profit for the first quarter is: A) $ 83,000 B) $ 87,000 C) $ 90,000 D) $221,000 E) $250,000
D) $ 200 (loss).
Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2018, with payment of 10 million Korean won to be received on January 15, 2019. The following exchange rates applied: Assuming a forward contract was not entered into, what would be the net impact on Car Corp.'s 2018 income statement related to this transaction? A) $ 500 (gain). B) $ 500 (loss). C) $ 200 (gain). D) $ 200 (loss). E) $ - 0 -
C
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?
E) $934.
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? A) $794. B) $808. C) $892. D) $906. E) $934.
B) A fourth-quarter report is not required.
For companies that provide quarterly reports, how is the fourth quarter reported?A) Every company that reports for the first three quarters must also publish a fourth-quarter report. B) A fourth-quarter report is not required. C) Companies must publish a fourth-quarter report if there are significant changes from the third quarter. 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 of that quarter must also be separately disclosed in the annual financial statements.
C) Cost of goods sold.
Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except: A) Revenues from external customers. B) Unusual items. C) Cost of goods sold. D) Depreciation expense. E) Intersegment revenues.
C) The change in stockholders'equity.
If a company does not include a balance sheet and a statement of cash flows in an interim report, then which of the following items must be separately disclosed for that interim period? A) The balance of long-term liabilities. B) Net working capital. C) The change in stockholders'equity. D) The balance of cash and cash equivalents. E) The balance of retained earnings.
E) $19.8.
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? A) $12.5. B) $15.2. C) $17.2. D) $18.4. E) $19.8.
D) $13.0.
In applying the profit or loss test, what is the minimum amount an operating segment must have in order to meet the profit or loss test for a reportable segment? A) $ 8.2. B) $ 9.0. C) $10.4. D) $13.0. E) $82.0.
E) There is no loss to report.
What is the appropriate treatment in an interim financial report for inventory that has cost below net realizable value? A) The loss should always be recorded in the interim period in which cost drops below net realizable value. B) The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered temporary. C) The loss should be recorded in the interim period in which cost drops below net realizable value if the loss is considered permanent. D) The loss should be ignored for interim reporting purposes. E) There is no loss to report.
C) The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered permanent.
What is the appropriate treatment in an interim financial report for inventory with a net realizable value below cost? A) The loss should always be recorded in the interim period in which net realizable value drops below cost. B) The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered temporary. C) The loss should be recorded in the interim period in which net realizable value drops below cost if the loss is considered permanent. D) The loss should be ignored for interim reporting purposes. E) There is no loss to report.
D) $4,585,000. $45,850,000 × 10% = $4,585,000
What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable? A) $4,343,684. B) $4,826,316. C) $5,067,632. D) $4,585,000. E)$4,705,658
Answer here
put the question here (may need to screenshot questions and upload the picture as part of the question)
B) $660,000.
Elektronix, 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? A) $650,000. B) $660,000. C) $670,000. D) $680,000. E) $690,000.
C) $ 20,000 loss
How much Foreign Exchange Gain or Loss should Brisco record on May 31? A) $2,520,000 gain. B) $ 20,000 gain. C) $ 20,000 loss. D) $ 80,000 gain. E) $ 80,000 loss.
C) Yes Yes Yes No
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?
D) United States, Canada, Mexico, Germany.
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? 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.
B) Mowers and Edgers.
According to the revenue test, which segment(s) are separately reportable? A) Mowers only. B) Mowers and Edgers. C) Mowers and Weedeaters. D) Edgers and Weedeaters. E) Mowers, Edgers, and Weedeaters.
E) China, Crystal, and Silver.
According to the revenue test, which segment(s) are separately reportable? A) Silver only. B) Crystal and Silver. C) China and Crystal. D) China and Silver. E) China, Crystal, and Silver.
A) Segment assets.
All of the following are required to be reported in interim financial statements with respect to material operating segments, except: A) Segment assets. B) Segment revenues from external customers. C) Intersegment revenues. D) Segment profit or loss. E) Reconciliation of segment profit or loss to total income before taxes.
B) $322,750.
Assuming Baker makes the change in the first quarter of 2017, how much is reported as net income for the first quarter of 2017? A) $300,000. B) $322,750. C) $335,000. D) $265,000. E) $277,250.
A) $400,000.
Assuming Baker makes the change in the first quarter of 2018 and that $400,000 net income is earned during the second quarter, how much is reported as net income for the second quarter of 2018? A) $400,000. B) $405,200. C) $427,950. D) $894,850. E) $905,200.
D) $5.05.
Assuming Baker makes the change in the first quarter of 2018, compute net income per common share. A) $4.92. B) $4.95. C) $5.00. D) $5.05. E) $5.28.
C) $ 495.
Assuming a forward contract was entered into on December 16, at what amount should the forward contract be recorded at December 31, 2018? Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. A) $ 200. B) $ 295. C) $ 495. D) $ 500. E) $ 9,300.
B) Forward contract premium $ 600.
Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2018 at a A) Forward contract discount $ 600. B) Forward contract premium $ 600. C) Forward contract discount $ 980. D) Forward discount premium $ 980. E) There is no premium or discount because the fair value of the contract is zero.
Cost of Goods Sold - 138,000 Inventory - 130,000 Excess of Replacement Cost over historical cost of LIFO liquidation - 8,000
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. What is the correct journal entry to record cost of goods sold at the end of the first quarter?
E) $2,400,000.
How much US $ will it cost Brisco to finally pay the payable on June 7? A) $1,666,667. B) $2,440,000. C) $2,520,000. D) $2,500,000. E) $2,400,000.
A) $103,000
How much income tax expense is recognized in the second quarter of 2018? A) $103,000. B) $104,000. C) $112,000. D) $122,500. E) $208,000.
A) An operating segment's assets are 10 percent or more of combined segment assets.
Which of the following is a criterion for determining whether an operating segment is separately reportable? 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.
B) IFRS and U.S. GAAP both require disclosure of intangible assets attributable to geographic segments.
Which of the following is false with regard to accounting standards for segment reporting according to International Financial Reporting Standards (IFRS) and U.S. GAAP? A) IFRS and U.S. GAAP do not each require disclosure of segment liabilities. B) IFRS and U.S. GAAP both require disclosure of intangible assets attributable to geographic segments. C) According to IFRS, operating segments can be based on products and services. D) According to IFRS, operating segments can be based on geographic areas. E) IFRS and U.S. GAAP both require disclosure of total assets.
C) Gross profit.
Which of the following is not a required disclosure in an interim financial report? A) Net income. B) Earnings per share. C) Gross profit. D) Significant changes in estimates or provisions for income taxes. E) Disposal of a component, net of income taxes.
C) Cash flow information.
Which of the following is not a required disclosure in an interim financial report? A) Sales or gross revenues. B) Provision for income taxes. C) Cash flow information. D) Changes in accounting principles. E) Seasonal revenues and expenses.
C) Rakes, Pails, and Hardware.
Which operating segments are reportable under the profit or loss test? A) Rakes, Pails, and Shovels. B) Rakes, Pails, Shovels, and Hardware. C) Rakes, Pails, and Hardware. D) Rakes, Pails, Shovels, Hardware, and Accessories. E) Pails and Hardware.
B) Rakes, Pails, and Hardware.
Which operating segments are reportable under the revenue test? A) Pails and Hardware. B) Rakes, Pails, and Hardware. C) Rakes, Hardware, and Accessories. D) Rakes and Pails. E) Rakes and Hardware.
E) DVDs, VCRs, and MP3s.
Which operating segments are separately reportable under the asset test? A) DVDs only. B) DVDs and MP3s. C) DVDs and VCRs. D) VCRs and MP3s. E) DVDs, VCRs, and MP3s.
B) DVDs and MP3s.
Which operating segments are separately reportable under the operating profit or loss test? A) DVDs only. B) DVDs and MP3s. C) DVDs and VCRs. D) VCRs and MP3s. E) DVDs, VCRs, and MP3s.
B) DVDs and MP3s.
Which operating segments are separately reportable under the revenue test? A) DVDs only. B) DVDs and MP3s. C) DVDs and VCRs. D) VCRs and MP3s. E) DVDs, VCRs, and MP3s.
B) Revenue test, profit or loss test, and asset test
Which tests must a company use to determine which operating segments require separate disclosure? A) Revenue test and asset test. B) Revenue test, profit or loss test, and asset test. C) Revenue test and profit or loss test. D) Profit or loss test and asset test. E) Revenue test, asset test, and liability test.
D) Adjust financial statements for each prior period presented to reflect the effects of the new principle in those reported periods.
How should a change from one generally accepted accounting principle to another accepted principle be handled in a third-quarter income statement? A) Retrospectively restate the first-quarter income statement, net of income taxes, as though the change occurred at the beginning of the year. B) Postpone recording of the change to the annual income statement. C) Record the change in the third-quarter income statement, net of income taxes. D) Adjust financial statements for each prior period presented to reflect the effects of the new principle in those reported periods. E) These changes are prohibited by GAAP
A) In the same way as they are recognized on an annual basis.
How should revenues be 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.
D) $105,000.
Provo, Inc. has an estimated annual tax rate of 35 percent in the first quarter of 2018. Pretax income for the first quarter was $300,000. At the end of the second quarter of 2018, 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 2018? A) $ 0. B) $ 26,250. C) $ 96,000. D) $105,000. E) $112,000.
D) $2,940.
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? A) $2,730. B) $2,660. C) $2,800. D) $2,940. E) $2,520.
E) $480,000. $417,000 + $23,000 + $7,000 + $33,000 = $480,000
The Hardware operating segment of Bloom Corporation has the following revenues for the year ended December 31, 2018: For purposes of the revenue test, what amount will be used as total revenues of the Hardware operating segment? A) $417,000. B) $440,000. C) $424,000. D) $460,000. E) $480,000.
E) The LIFO liquidation should only be reflected in gross profit on an interim income statement if it is determined that it will not be replaced by year-end.
What is the appropriate treatment in an interim financial report for a LIFO liquidation? A) The LIFO liquidation is always ignored for interim reporting. B) The LIFO liquidation should always be reflected in gross profit on an interim income statement. C) The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim balance sheet and the interim income statement. D) The LIFO liquidation should always result in replacement cost valuation of ending inventory on the interim income statement but not the interim balance sheet. E) The LIFO liquidation should only be reflected in gross profit on an interim income statement if it is determined that it will not be replaced by year-end.
C) The variances expected to be absorbed by year-end should not be reflected in the interim statement.
What is the appropriate treatment in an interim financial report for variances arising from the use of a standard costing system? A) The variances are always ignored for interim reporting. B) The variances should always be reflected in gross profit on an interim income statement. C) The variances expected to be absorbed by year-end should not be reflected in the interim statement. D) The variances should always be reflected in the interim income statement but not the interim balance sheet. E) The variances should only be reflected in the interim balance sheet.
B) $ 2,500,000.
What is the minimum amount of assets an operating segment must have to be considered a reportable segment? A) $ 1,400,000. B) $ 2,500,000. C) $ 4,100,000. D) $ 5,000,000. E) $25,000,000.
A) $ 9,450,000. $94,500,000 × 10% = $9,450,000
What is the minimum amount of assets that each of these segments must own to be considered separately reportable? A) $ 9,450,000. B) $ 8,624,272. C) $10,643,000. D) $12,936,408. E) $10,413,000.
E) $140,000.
What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment? A) $124,000. B) $127,600. C) $100,000. D) $130,000. E) $140,000.
B) $812,000. $8,120,000 × 10% = $812,000
What is the minimum amount of profit or loss that each of these segments must earn to be considered separately reportable? A) $769,263. B) $812,000. C) $854,737. D) $897,000. E) $833,368.
C) Research and development expense.
Vapor Corporation has a fan products operating segment. With respect to the following, which is Vapor not required to report for this segment? A) Depreciation expense. B) Amortization expense. C) Research and development expense. D) Interest expense. E) Interest income.
E) $941 gain.
What amount of foreign exchange gain or loss should be recorded on December 31? A) $300 gain. B) $300 loss. C) $ 0. D) $941 loss. E) $941 gain.
B) $1,516 loss.
What amount of foreign exchange gain or loss should be recorded on January 30? A) $1,516 gain. B) $1,516 loss. C) $575 loss. D) $500 loss. E) $500 gain.
A) $3,900.
What amount of revenue must be generated from one customer before such party must be identified as a major customer? A) $3,900. B) $4,000. C) $4,100. D) $4,200. E) $4,400.
D) Discrete and integral.
What are the two approaches that can be followed in preparing interim reports? A) Indiscrete and terminal. B) Discrete and terminal. C) Metric and integral. D) Discrete and integral. E) Discrete and metric.
B) The operating segment reporting sales to the customer.
What information does U.S. GAAP require to be disclosed for a major customer? A) The identity of the customer. B) The operating segment reporting sales to the customer. C) The geographic area of the customer. D) The specific products or services purchased by the customer. E) The length of time the customer has been a customer of the company.
C) A condensed statement of accumulated pension liabilities.
According to International Financial Reporting Standards (IFRS), all of the following are part of minimum components of interim financial reporting except: A) A condensed statement of cash flows. B) A condensed statement of financial position. C) A condensed statement of accumulated pension liabilities. D) A condensed statement of net income and comprehensive income. E) Accrual of income tax expense at the end of each interim period.
E) Gross revenues.
According to authoritative accounting literature, which of the following are required to be disclosed in interim reports? A) Cash flows from investing activities. B) Change in cash. C) Total current liabilities. D) Total assets. E) Gross revenues.
A) $2,500,000.
Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows: For what amount should Brisco's Accounts Payable be credited on May 8? A) $2,500,000. B) $2,440,000. C) $1,600,000. D) $1,639,344. E) $1,666,667.
D) $144,000.
Kaycee Corporation's revenues for the year ended December 31, 2017, were as follows: Consolidated Revenue per the Income Statement: $1,200,000 Division 1 Intersegment Sales: $180,000 Division 2 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? A) $ 24,000. B) $120,000. C) $138,000. D) $144,000. E) $ 0.
E) Segment D is a reportable segment based on this test.
Kurves Corp. had six different operating segments reporting the following operating profit and loss figures: Which one of the following statements is true? 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.
B) $28,000.
Meisner Co. ordered parts costing §100,000 for a foreign supplier on May 12 when the spot rate was $.24 per stickle. A one-month forward contract was signed on that date to purchase §100,000 at a forward rate of $.25 per stickle. On June 12, when the parts were received and payment was made, the spot rate was $.28 per stickle. At what amount should inventory be reported? A) $ 0. B) $28,000. C) $24,000. D) $25,000. E) $ 2,000.
B) A, B, C, and E.
Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: According to the profit or loss test, which segments would require disaggregation? A) A, B, D, and E. B) A, B, C, and E. C) A, B, and D. D) A and D. E) A only.
A) A, B, D, and E.
Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: According to the revenue test, which segments would require disaggregation? A) A, B, D, and E. B) A and B. C) B and C. D) A, B, and D. E) C, D, and E.
E) $ (200,000.)
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 A) $1,300,000. B) $ 700,000. C) $2,000,000. D) $ 200,000. E) $ (200,000.)
D) $17,241.
Norton Co., a U.S. corporation, sold inventory on December 1, 2018, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: For what amount should Sales be credited on December 1? A) $ 5,500. B) $16,949. C) $18,182. D) $17,241. E) $16,667.
B) $ 0.
On June 1, CamCo received a signed agreement to sell inventory for ¥500,000. The sale would take place in 90 days. CamCo immediately signed a 90-day forward contract to sell the yen as soon as they are received. The spot rate on June 1 was ¥1 =$.004167, and the 90-day forward rate was ¥1 = $.00427. At what amount would CamCo record the Forward Contract on June 1? A) $2,083. B) $ 0. C) $2,110. D) $2,532. E) $2,135.
D) $4,200.
Peterson Corporation 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? A) $3,900. B) $4,000. C) $4,100. D) $4,200. E) $4,400.
D) $ 3,850 loss
Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2018. Pigskin received payment of 35,000 British pounds on May 8, 2018. The exchange rate was £1 = $1.54 on April 8 and £1 = 1.43 on May 8. What amount of foreign exchange gain or loss should be recognized? (round to the nearest dollar) A) $10,500 loss B) $10,500 gain C) $ 1,750 loss D) $ 3,850 loss E) No gain or loss should be recognized.
D) $16,200.
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? A) $12,000. B) $15,000. C) $15,500. D) $16,200. E) $16,700.
A) Factors used to allocate company-wide pension expense.
The following items are required to be disclosed for each operating segment except: 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.
C) The segments may sell different products, but they have a similar economic environment and similar business activities.
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? 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 economic environment and similar business activities. 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.
E) 1, 2, 3, and 4
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. 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
D) $124,000 loss.
What is the operating profit or loss for the VCRs segment? A) $121,000 profit. B) $121,000 loss. C) $124,000 profit. D) $124,000 loss. E) $500,000 profit.
C) Disclose the seasonal nature of business operations, and consider a report for the 12-month period ended at the interim date to supplement the interim report.
How should seasonal revenues be reported in an interim report? A) Disclose the seasonal nature of business operations, and include a pro forma report for the next 12-month period. B) Disclose the seasonal nature of business operations but do not include other reports supplemental to the interim report. C) Disclose the seasonal nature of business operations, and consider a report for the 12-month period ended at the interim date to supplement the interim report. D) The financial statements should be adjusted to reflect the assumption that no seasonal revenues could be recognized. E) Seasonal revenues have no particular reporting requirement.
B) $12,525,000.
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? A) $ 1,670,000. B) $12,525,000. C) $15,487,500. D) $16,700,000. E) $20,650,000.
B) I and III only.
A company that generates reports by both geographic region and product line must consider additional criteria in identifying operating segments when there are multiple sets of reports. Which of the following statement(s) is correct? (I.) An operating segment has a segment manager who is directly accountable to the chief operating decision maker for its financial performance. (II.) If more than one set of organizational units exists, each organizational unit is considered an operating segment even if there is only one set for which segment managers are held responsible. (III.) If segment managers exist for two or more overlapping sets of organizational units, the nature of the business activities must be considered. A) I, II, and III. B) I and III only. C) I and II only. D) II and III only. E) None of the above.
E) $ 0, since there is no cost, there is no value for the contract at this date.
Belsen purchased inventory on December 1, 2017. Payment of 200,000 stickles was to be made in sixty days. Also on December 1, Belsen signed a contract to purchase §200,000 in sixty days. The spot rate was §1 = .35714, and the 60-day forward rate was §1 = $.38462. On December 31, the spot rate was §1 = .34483 and the 30-day forward rate was §1 = .38168. Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. In the journal entry to record the establishment of a forward exchange contract, at what amount should the Forward Contract account be recorded on December 1? A) $71,428. B) $76,924. C) $ 588. D) $ 582. E) $ 0, since there is no cost, there is no value for the contract at this date.
E) Rakes, Pails, and Hardware.
Which operating segments are reportable under the asset test? A) None. B) Pails. C) Rakes, Pails, and Shovels. D) Rakes and Hardware. E) Rakes, Pails, and Hardware.
D) FIFO is remeasured using the LIFO method in an interim financial statement.
Which of the following is not correct regarding inventory procedures reported in an interim financial statement? A) LIFO liquidations a company expects to be replaced by year-end should be recorded in cost of goods sold, quantified at expected replacement cost rather than original LIFO cost. B) Lower-of-cost-or-net realizable value 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) The geographical location of the operations.
Which of the following is not one of the criteria management should consider in determining whether business activities and environments of an operating segment are similar? A) The geographical location of the operations. B) The nature of the production process. C) The distribution methods. D) The nature of the regulatory environment, if applicable. E) The type or class of customer.
E) I, II, III, and IV.
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 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.
D) Revenues from external customers.
Which of the following must be disclosed by a geographic segment according U.S. GAAP? A) Operating profit or loss. B) Gross profit. C) Total assets. D) Revenues from external customers. E) Revenues from internal customers.
B) Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year.
Which of the following statements is false concerning the number of operating segments that should be disclosed? A) At least 75 percent of total company sales made to outsiders should be presented. B) Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year. C) If the 75 percent rule is not met by the results of applying all three reporting tests, additional segments must be disclosed separately despite their failure to satisfy even one of the three quantitative thresholds. D) If an operating segment qualifies for disclosure in the current year, prior period segment data presented for comparative purposes must be restated to reflect the newly reportable segment as a separate segment. E) The practical limit to the number of operating segments is 10.
B) Segment information does not have to be in accordance with generally accepted accounting principles.
Which of the following statements is true according to U.S. GAAP regarding operating segment disclosure? A) The measurement of segment profit and loss disclosure need not be similar to the measurement provided to the chief operating decision maker. 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) Immaterial items must be disclosed.
D) An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments.
Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments? A) Operating segments are components of an enterprise that engage in business activities and from which it only recognizes revenues. B) The corporate controller reviews each operating segment's operating results to assess performance. C) A component may be classified as an operating segment without revenues assuming that it generates a material level of expense. D) An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments. E) All parts of a company must be included in an operating segment.
B) Revenues should be recognized in interim periods in the same way as they are on an annual basis.
Which of the following statements is true regarding the reporting of revenues in an interim report? A) Revenues should be recognized on the income tax basis for interim reporting. B) Revenues should be recognized in interim periods in the same way as they are on an annual basis. C) Projected losses on long-term contracts should be deferred to the annual report. D) The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting. E) Revenues should be recognized on the cash basis of accounting for interim reporting.
D) In determining reportable segments, three tests are applied and only one must be met.
Which of the following statements is true? A) In determining reportable segments, two tests are applied and both must be met. B) In determining reportable segments, three tests are applied and all three must be met. C) In determining reportable segments, two tests are applied and only one must be met. D) In determining reportable segments, three tests are applied and only one must be met. E) In determining reportable segments, at least 80% of the revenues from external customers must be reported.
A) United States, All Other Countries.
Which of the following would be an acceptable grouping for a U.S. company to provide information by geographic area? 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.
D) Factors used to allocate company-wide expenses.
Which one of the following items is not required to be disclosed for each operating segment? 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.
D) I and II only
Which one of the following items must be disclosed for all reportable operating segments in the notes to financial statements? (I.) Revenue from external customers. (II.) Total Segment Assets (III.) Revenues from foreign customers, identified by country. A) I, II, and III B) I and III only C) II and III only D) I and II only E) There is no requirement of information to disclose for operating segments.
