Adv. Acct C.8

Carson Company has 4 operating segments. What revenue amount must one customer generate before it must be identified as a major customer?

$37,600.

Quatro Corp. engages solely in manufacturing operations. In its segment information for the current year, how many reportable segments does Quatro have?

Five

Which of the following must be disclosed in interim reports?

Gross revenues.

Which of the following does U.S. GAAP NOT consider to be an objective of segment reporting?

It helps users make comparisons between a segment of one enterprise and a similar segment of another enterprise.

Estilo Company has three operating segments. What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?

LO8-2

Which of the following operating segment disclosures is NOT required under current U.S. accounting guidelines?

Liabilities

Jarvis Corp has 6 different operating segments reporting the following profit and loss figures... With respect to the profit or loss test, which of the following statements is NOT true?

O is not a reportable segment based on this one test.

For interim financial reporting, an extraordinary gain occurring in the second quarter should be:

Recognized in the second quarter.

Plume Company has a paper products operating segment. Which of the following items does it NOT have to report for this segment?

Research and development expense.

Which of the following items is required to be disclosed by geographic area?

Revenues from external customers.

Under current U.S. accounting guidelines, which of the following items of information is Most Company NOT required to disclose, even if it were material in amount?

Revenues generated from export sales.

Which of the following is a criterion for determining whether an operating segment is separately reportable?

Segment assets are 10% or more of combined segment assets.

Which of the following is NOT required to be reporting in interim financial statements for each material operating segment?

Segment assets.

Which of the following statements concerning GAAP is true?

Does not require segment information to be reported in accordance with generally accepted accounting principles.

According to GAAP, which of the following is an acceptable grouping of countries for providing information by geographic area?

United States, Canada and Mexico, Germany, Italy. (or all other countries)

What information about revenues by geographic area should a company present?

**SEE LO8-4: No disclosure of revenues from foreign operations need to be reported..... OR disclose separately the amount of sales but not intra-entity sales

What is the minimum number of operating segments that must be separately reported?

? LO8-2; Segments with at least 75% of the revenues generated from outimes parties

Niceville Company pays property taxes of $100,000 in the 2nd quarter of the year. Which of the following statements is true with respect to the recognition of property tax expense in interim financial statements?

?LO8-9

Which of the following is not necessarily true for an operating segment?

An operating segment regularly generates profit from its normal ongoing operations.

In considering interim financial reporting, how does current GAAP require that such reporting be viewed?

As reporting for an integral part of an annual period.

Which of the following is NOT true under GAAP?

Companies must combine individual foreign countries into geographic areas to comply with the geographic area disclosure requirements.

Which of the following information items with regard to a major customer must be disclosed?

The operating segment making the sale?

How should material seasonal variations in revenue be reflected in interim financial statements?

The seasonal nature should be disclosed, and the interim report should be supplemented with a report on the 12-month period.

In determining whether a particular operating segment is of significant size to warrant disclosure, which of the following is true?

Three tests are applied, and only one must be met.

Which of the following statements is true for a company that has managers responsible for product and service lines of business and managers responsible for geographic areas (matrix form of organization)?

Under IFRS, the company must refer to the core principle of IFRS 8 to determine operating segments.