Topic 4
(T/F) Revenue of a segment includes sales to unaffiliated customers and other revenue and gains.
FALSE
(T/F) The operating approach reflects how management segments the company for making operating decisions.
FALSE
(T/F) IFRS requires that a company report the major customers.
TRUE
(T/F) IFRS requires that a company report the segment assets and liabilities.
TRUE
(T/F) IFRS requires that a company report the segments profits and loss and related information.
TRUE
(T/F) IFRS requires that general-purpose financial statements include selected information on a single basis of segmentation.
TRUE
(T/F) IFRS requires that the same accounting principles used for the annual report should be employed for interim reports.
TRUE
(T/F) If 10 percent or more of company revenue is derived from a single customer, the company must disclose the total amount of revenue from each such customer by segment.
TRUE
(T/F) In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed as reporting for an integral part of an annual period.
TRUE
(T/F) Income tax expense is recognized in each interim period based on the best estimate of the weighted-average annual income tax rate expected for the full financial year.
TRUE
(T/F) Interest revenue information about each operating segment must be reported.
TRUE
(T/F) Revenue of a segment includes sales to unaffiliated customers and intersegment sales.
TRUE
(T/F) The accounting profession requires disaggregated information about the geographic areas.
TRUE
(T/F) The accounting profession requires disaggregated information about the major customers
TRUE
(T/F) The accounting profession requires disaggregated information about the products or services.
TRUE
(T/F) Unusual items information about each operating segment must be reported
TRUE
(T/F) Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting the segment profit or loss of 10% or more of consolidated profit or loss.
FALSE
(T/F) Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting the segment revenue is 10% or more of consolidated revenue.
FALSE
(T/F) For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the effective tax rate expected to be applicable for the full year as estimated at the end of the first quarter.
FALSE
(T/F) For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the effective tax rate expected to be applicable for the full year as estimated at the end of the second quarter
FALSE
(T/F) For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the effective tax rate expected to be applicable for the second quarter.
FALSE
(T/F) IASB decided that five was a reasonable upper limit for the number of segment that a company must disclose.
FALSE
(T/F) IASB decided that six was a reasonable upper limit for the number of segment that a company must disclose.
FALSE
(T/F) IASB decided that two was a reasonable upper limit for the number of segment that a company must disclose.
FALSE
(T/F) IFRS requires a complete set of financial statements at the interim reporting date.
FALSE
(T/F) IFRS requires that a company report the segment liquidity ratios.
FALSE
(T/F) IFRS requires that all companies that issue an annual report should issue interim financial reports.
FALSE
(T/F) IFRS requires that the integral view is the most appropriate approach to take in preparing interim financial reports.
FALSE
(T/F) IFRS requires that the three basic financial statements should be presented each time an interim period is reported upon.
FALSE
(T/F) In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed as a "special" type of reporting that need not follow international financial reporting standards.
FALSE
(T/F) In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed as reporting for a separate accounting period.
FALSE
(T/F) Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting the segment profit or loss is 10% or more of combined profit or loss of all company segments.
FALSE
(T/F) In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed as useful only if activity is evenly spread throughout the year so that estimates are unnecessary.
FALSE
(T/F) Revenue of a segment includes only sales to unaffiliated customers.
FALSE
(T/F) A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the combined net income of all segments reporting profits.
FALSE
(T/F) A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the total combined revenues of all segments reporting profits.
FALSE
(T/F) A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the total export and foreign sales.
FALSE
(T/F) An operating segment is a reportable segment if its operating loss is 10% or more of the combined operating losses of segments that incurred an operating loss.
FALSE
(T/F) An operating segment is a reportable segment if its operating profit is 10% or more of the combined operating profit of profitable segments.
FALSE
(T/F) An operating segment is a reportable segment if the absolute amount of its operating profit or loss is 10% or more of the company's combined operating profit or loss.
FALSE
(T/F) Companies should disclose the balance in accounts receivable in their interim reports.
FALSE
(T/F) Companies should report accounting transactions as they occur, and expense recognition should not change with the period of time covered under the integral approach under the interim financial reporting.
FALSE
(T/F) Cost of goods sold information about each operating segment must be reported
FALSE
(T/F) Revenue of a segment includes sales to unaffiliated customers and interest revenue.
FALSE
(T/F) A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the total revenues of all the enterprise's industry segments.
TRUE
(T/F) Companies should disclose the changes in accounting policies in their interim reports.
TRUE
(T/F) Companies should disclose the dividends paid in their interim reports.
TRUE
(T/F) Companies should disclose the seasonal revenue, cost, or expense in their interim reports.
TRUE
(T/F) Companies should generally use the same accounting policies for interim reports and for annual reports.
TRUE
(T/F) Depreciation and amortization expense information about each operating segment must be reported.
TRUE
(T/F) Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting the segment revenue is 10% or more of combined revenue of all the company segments.
TRUE
(T/F) For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the statutory tax rate for the year.
TRUE
(T/F) For interim financial statements, no accruals or deferrals in anticipation of future events during the year should be reported.
TRUE
(T/F) IASB decided that ten was a reasonable upper limit for the number of segment that a company must disclose.
TRUE
(T/F) IFRS companies expense interim amounts like advertising expenditures that could benefit later interim periods.
TRUE