Question 1

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Accepted Answer

For operating segments deemed reportable

Question 2

Which of the following is not a required disclosure in an interim financial report?

Accepted Answer

A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Cash flow information. 
D)  Changes in accounting principles. 
E)  Seasonal revenues and expenses. 
A)  Sales or gross revenues. 
B)  Provision for income taxes. 
C)  Cash flow information. 
D)  Changes in accounting principles. 
E)  Seasonal revenues and expenses.

Question 3

Which of the following is reported for interim financial reports using the discrete approach?

Accepted Answer

A)  Income tax expense. 
B)  Seasonal items. 
C)  Change in accounting principle. 
D)  Property tax expense. 
E)  Discontinued operations. 
A)  Income tax expense. 
B)  Seasonal items. 
C)  Change in accounting principle. 
D)  Property tax expense. 
E)  Discontinued operations.

Question 4

How much of this expense should be included in Cleveland's net income for the quarter ending March 31, 2018?

Accepted Answer

$75,000 [$

Question 5

Which operating segments are reportable under the asset test?

Accepted Answer

A)  None. 
B)  Pails. 
C)  Rakes, Pails, and Shovels. 
D)  Rakes and Hardware. 
E)  Rakes, Pails, and Hardware. 
A)  None. 
B)  Pails. 
C)  Rakes, Pails, and Shovels. 
D)  Rakes and Hardware. 
E)  Rakes, Pails, and Hardware.

Question 6

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?

Accepted Answer

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. 
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.

Question 7

Which of the following statements is false concerning the number of operating segments that should be disclosed?

Accepted Answer

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. 
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.

Question 8

What related items need to be disclosed in regard to total segment assets?

Accepted Answer

The related items in regard to

Question 9

How much income tax expense is recognized in the first quarter of 2018?

Accepted Answer

A)  $ 0. 
B)  $ 26,250. 
C)  $ 96,000. 
D)  $105,000. 
E)  $112,000. 
A)  $ 0. 
B)  $ 26,250. 
C)  $ 96,000. 
D)  $105,000. 
E)  $112,000.

Question 10

What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

Accepted Answer

A)  $2,730. 
B)  $2,660. 
C)  $2,800. 
D)  $2,940. 
E)  $2,520. 
A)  $2,730. 
B)  $2,660. 
C)  $2,800. 
D)  $2,940. 
E)  $2,520.

Question 11

According to authoritative accounting literature, which of the following are required to be disclosed in interim reports?

Accepted Answer

A)  Cash flows from investing activities. 
B)  Change in cash. 
C)  Total current liabilities. 
D)  Total assets. 
E)  Gross revenues. 
A)  Cash flows from investing activities. 
B)  Change in cash. 
C)  Total current liabilities. 
D)  Total assets. 
E)  Gross revenues.

Question 12

According to the profit or loss test, which segments would require disaggregation?

Accepted Answer

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. 
B)  A, B, C, and E. 
C)  A, B, and D. 
D)  A and D. 
E)  A only.

Question 13

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. 
A)  $ 1,400,000. 
B)  $ 2,500,000. 
C)  $ 4,100,000. 
D)  $ 5,000,000. 
E)  $25,000,000.

Question 14

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)  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. 
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.

Question 15

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?

Accepted Answer

A)  $400,000. 
B)  $405,200. 
C)  $427,950. 
D)  $894,850. 
E)  $905,200. 
A)  $400,000. 
B)  $405,200. 
C)  $427,950. 
D)  $894,850. 
E)  $905,200.

Question 16

How much income tax expense is recognized in the second quarter of 2018?

Accepted Answer

A)  $103,000. 
B)  $104,000. 
C)  $112,000. 
D)  $122,500. 
E)  $208,000. 
A)  $103,000. 
B)  $104,000. 
C)  $112,000. 
D)  $122,500. 
E)  $208,000.

Question 17

How should seasonal revenues be reported in an interim report?

Accepted Answer

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. 
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.

Question 18

What is the major objective of segment reporting?

Accepted Answer

According to U.S. GAAP, the objective of

Question 19

What approach is used, according to U.S.GAAP, for determining how a business is divided into segments?

Accepted Answer

The management appro

Question 20

Which operating segments are reportable under the revenue test?

Accepted Answer

A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware. 
A)  Pails and Hardware. 
B)  Rakes, Pails, and Hardware. 
C)  Rakes, Hardware, and Accessories. 
D)  Rakes and Pails. 
E)  Rakes and Hardware.

Exam 8: A: Segment and Interim Reporting

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Which of the following is not a required disclosure in an interim financial report?

Which of the following is reported for interim financial reports using the discrete approach?

How much of this expense should be included in Cleveland's net income for the quarter ending March 31, 2018?

Which operating segments are reportable under the asset test?

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?

Which of the following statements is false concerning the number of operating segments that should be disclosed?

What related items need to be disclosed in regard to total segment assets?

How much income tax expense is recognized in the first quarter of 2018?

What is the minimum amount of revenue that each of these segments must earn to be considered separately reportable?

According to authoritative accounting literature, which of the following are required to be disclosed in interim reports?

According to the profit or loss test, which segments would require disaggregation?

What is the minimum amount of assets an operating segment must have to be considered a reportable segment?

For companies that provide quarterly reports, how is the fourth quarter reported?

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?

How much income tax expense is recognized in the second quarter of 2018?

How should seasonal revenues be reported in an interim report?

What is the major objective of segment reporting?

What approach is used, according to U.S.GAAP, for determining how a business is divided into segments?

Which operating segments are reportable under the revenue test?

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

A: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

Filters