Question 1

The FASB requires allocations of joint, common, or company-wide costs for external reporting purposes.

Accepted Answer

A) True 
 B)False  False

Question 2

IFRS requires segment reporting, and uses the management approach to identify reportable segments.

Accepted Answer

A) True 
 B)False  True

Question 3

Segment reporting.The Financial Accounting Standards Board requires the reporting of disaggregated financial data about the different types of business activities in which an enterprise engages.
InstructionsIdentify 4 of the 6 items of disaggregated information the FASB requires that an enterprise report.

Accepted Answer

The FASB requires that an enterprise report the following disaggregated information:
1. General information about its operating segments.
2. Segment profit and loss and related information.
3. Segment's total assets.
4. Reconciliation of the total of operating segments' profits and losses to its income before income taxes.
5. Information about products and services and geographic areas.
6. Total amount of revenues derived from major customers.

Question 4

IFRS requires which of the following disclosures regarding related parties?
I.The name of the related party.
II.The amount and terms of the outstanding balance
III.Doubtful amounts related to the outstanding balance.

Accepted Answer

A)  I, II, and III. 
B)  I and II. 
C)  I and III. 
D)  II and III. 
A)  I, II, and III. 
B)  I and II. 
C)  I and III. 
D)  II and III.

Question 5

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 which of the following criteria?

Accepted Answer

A)  Segment profit or loss is 10% or more of consolidated profit or loss. 
B)  Segment profit or loss is 10% or more of combined profit or loss of all company segments. 
C)  Segment revenue is 10% or more of combined revenue of all the company segments. 
D)  Segment revenue is 10% or more of consolidated revenue. 
A)  Segment profit or loss is 10% or more of consolidated profit or loss. 
B)  Segment profit or loss is 10% or more of combined profit or loss of all company segments. 
C)  Segment revenue is 10% or more of combined revenue of all the company segments. 
D)  Segment revenue is 10% or more of consolidated revenue.

Question 6

A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the

Accepted Answer

A)  total combined revenues of all segments reporting profits. 
B)  total revenues of all the enterprise's industry segments. 
C)  total export and foreign sales. 
D)  combined net income of all segments reporting profits. 
A)  total combined revenues of all segments reporting profits. 
B)  total revenues of all the enterprise's industry segments. 
C)  total export and foreign sales. 
D)  combined net income of all segments reporting profits.

Question 7

Use the following information for questions 64 through 69.
The following data are provided:   Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The profit margin on sales for 2015 is

Accepted Answer

A)  2,200 ÷ 6,400. 
B)  750 ÷ 6,400. 
C)  2,200 ÷ 4,200. 
D)  750 ÷ 4,200. 
A)  2,200 ÷ 6,400. 
B)  750 ÷ 6,400. 
C)  2,200 ÷ 4,200. 
D)  750 ÷ 4,200.

Question 8

Use the following information for questions 60 through 63.
Information for Ramirez Corp. is given below:   Additional information:
There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2015, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2015. Assume that preferred dividends for the current year have not been declared.
-At December 31, 2015, the current ratio was

Accepted Answer

A)  1,500 ÷ 420. 
B)  4,450 ÷ 546. 
C)  3,126 ÷ 546. 
D)  3,126 ÷ 696. 
A)  1,500 ÷ 420. 
B)  4,450 ÷ 546. 
C)  3,126 ÷ 546. 
D)  3,126 ÷ 696.

Question 9

Theoretically, in computing the accounts receivable turnover, the numerator should include

Accepted Answer

A)  net sales. 
B)  net credit sales. 
C)  total sales. 
D)  total credit sales. 
A)  net sales. 
B)  net credit sales. 
C)  total sales. 
D)  total credit sales.

Question 10

An inventory loss from market decline of $1,200,000 occurred in May 2015, after its March 31, 2015 quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements?

Accepted Answer

The answer of An inventory loss from market decline of...

Question 11

Neither U.S. GAAP nor IFRS requires interim reports.

Accepted Answer

A) True 
 B)False

Question 12

If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the

Accepted Answer

A)  nature of the relationship between the parties to the transactions. 
B)  nature of any future transactions planned between the parties and the terms involved. 
C)  dollar amount of the transactions for each of the periods for which an income state-ment is presented. 
D)  amounts due from or to related parties as of the date of each balance sheet presented. 
A)  nature of the relationship between the parties to the transactions. 
B)  nature of any future transactions planned between the parties and the terms involved. 
C)  dollar amount of the transactions for each of the periods for which an income state-ment is presented. 
D)  amounts due from or to related parties as of the date of each balance sheet presented.

Question 13

Presented below are four segments that have been identified by Haley Productions: $\begin{array}{rrrr}& \text { Total Revenue } & \text { Operating } \
\text { Segments } & \text { (Unaffiliated) } & \text { Profit (Loss) } & \text { Identifiable Assets }\
\text { A } & \$ 255,000 & \$ 30,000 & \$ 900,000 \
\text { B } & 600,000 & (55,000) & 800,000 \
\text { C } & 225,000 & 6,000 & 450,000 \
\text { D } & 90,000 & 4,000 & 225,000
\end{array}$ For which of the segments would information have to be disclosed in accordance with professional pronouncements?

Accepted Answer

A)  Segments A, B, C, and D 
B)  Segments A, B, and C 
C)  Segments A and B 
D)  Segments A and D 
A)  Segments A, B, C, and D 
B)  Segments A, B, and C 
C)  Segments A and B 
D)  Segments A and D

Question 14

Use the following information for questions 64 through 69.
The following data are provided:   Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The return on common stock equity for 2015 is

Accepted Answer

A)  750 ÷ 3,600. 
B)  750 ÷ 4,000. 
C)  650 ÷ 3,600. 
D)  650 ÷ 4,000. 
A)  750 ÷ 3,600. 
B)  750 ÷ 4,000. 
C)  650 ÷ 3,600. 
D)  650 ÷ 4,000.

Question 15

Accounting principles are modified for the following at interim dates. $\begin{array}{lcc} 
& \text { Revenue } & \text { Losses } \\end{array}$
A)$\begin{array}{lcc}  & \text { Yes } &&& \text { Yes } \\end{array}$
B)$\begin{array}{lcc}  & \text { Yes } &&& \text { No } \\end{array}$
C)$\begin{array}{lcc} & \text { No } &&& \text { Yes } \\end{array}$
D)$\begin{array}{lcc}  & \text { No } &&& \text { No }
\end{array}$

Accepted Answer

The answer of Accounting principles are modified for the following...

Question 16

How is the average inventory used in the calculation of each of the following?

Accepted Answer

The answer of How is the average inventory used in...

Question 17

The focus of APB Opinion No. 22 is on the disclosure of accounting policies. This information is important to financial statement readers in determining

Accepted Answer

A)  net income for the year. 
B)  whether accounting policies are consistently applied from year to year. 
C)  the value of obsolete items included in ending inventory. 
D)  whether the working capital position is adequate for future operations. 
A)  net income for the year. 
B)  whether accounting policies are consistently applied from year to year. 
C)  the value of obsolete items included in ending inventory. 
D)  whether the working capital position is adequate for future operations.

Question 18

The difference between a financial forecast and a financial projection is that a forecast provides information on what is expected to happen, while a projection provides information on what might take place.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

Accepted Answer

The answer of Which of the following ratios is(are) useful...

Question 20

The calculation of the times interest earned involves dividing

Accepted Answer

A)  net income by annual interest expense. 
B)  net income plus income taxes by annual interest expense. 
C)  net income plus income taxes and interest expense by annual interest expense. 
D)  None of these answers are correct. 
A)  net income by annual interest expense. 
B)  net income plus income taxes by annual interest expense. 
C)  net income plus income taxes and interest expense by annual interest expense. 
D)  None of these answers are correct.

The FASB requires allocations of joint, common, or company-wide costs for external reporting purposes.

IFRS requires segment reporting, and uses the management approach to identify reportable segments.

IFRS requires which of the following disclosures regarding related parties? I.The name of the related party. II.The amount and terms of the outstanding balance III.Doubtful amounts related to the outstanding balance.

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 which of the following criteria?

A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the

Theoretically, in computing the accounts receivable turnover, the numerator should include

An inventory loss from market decline of $1,200,000 occurred in May 2015, after its March 31, 2015 quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements?

Neither U.S. GAAP nor IFRS requires interim reports.

If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the

Accounting principles are modified for the following at interim dates. Revenue Losses A) Yes Yes B) Yes No C) No Yes D) No No

How is the average inventory used in the calculation of each of the following?

The focus of APB Opinion No. 22 is on the disclosure of accounting policies. This information is important to financial statement readers in determining

The difference between a financial forecast and a financial projection is that a forecast provides information on what is expected to happen, while a projection provides information on what might take place.

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

The calculation of the times interest earned involves dividing

Financial Accounting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Balance Sheet and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities and Contingencies

Long-Term Liabilities

Stockholders Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue Recognition

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Appendix

Filters

Exam 24: Full Disclosure in Financial Reporting

The FASB requires allocations of joint, common, or company-wide costs for external reporting purposes.

IFRS requires segment reporting, and uses the management approach to identify reportable segments.

IFRS requires which of the following disclosures regarding related parties? I.The name of the related party. II.The amount and terms of the outstanding balance III.Doubtful amounts related to the outstanding balance.

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 which of the following criteria?

A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the

Theoretically, in computing the accounts receivable turnover, the numerator should include

An inventory loss from market decline of $1,200,000 occurred in May 2015, after its March 31, 2015 quarterly report was issued. None of this loss was recovered by the end of the year. How should this loss be reflected in the company's quarterly income statements?

Neither U.S. GAAP nor IFRS requires interim reports.

If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the

Accounting principles are modified for the following at interim dates. Revenue Losses A) Yes Yes B) Yes No C) No Yes D) No No

How is the average inventory used in the calculation of each of the following?

The focus of APB Opinion No. 22 is on the disclosure of accounting policies. This information is important to financial statement readers in determining

The difference between a financial forecast and a financial projection is that a forecast provides information on what is expected to happen, while a projection provides information on what might take place.

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

The calculation of the times interest earned involves dividing

Financial Accounting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Balance Sheet and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities and Contingencies

Long-Term Liabilities

Stockholders Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue Recognition

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Appendix

Filters