Filters
Question type
Study Flashcards

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

Correct Answer

verifed

verified

The management appro...

View Answer

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands) : Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands) : 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. 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.

F) A) and B)
G) None of the above

Correct Answer

verifed

verified

Wayne, Inc. has four operating segments with the following information: Wayne, Inc. has four operating segments with the following information: Which operating segments are separately reportable under the operating profit or loss test? A) Tables and Chairs. B) Bookcases only. C) Tables, Bookcases, and Cabinets. D) Bookcases, Cabinets, and Chairs. E) Tables, Bookcases, Cabinets, and Chairs. Which operating segments are separately reportable under the operating profit or loss test?


A) Tables and Chairs.
B) Bookcases only.
C) Tables, Bookcases, and Cabinets.
D) Bookcases, Cabinets, and Chairs.
E) Tables, Bookcases, Cabinets, and Chairs.

F) B) and C)
G) A) and C)

Correct Answer

verifed

verified

Wayne, Inc. has four operating segments with the following information: Wayne, Inc. has four operating segments with the following information: What is the operating profit or loss for the Cabinets segment? A) $745,000. B) $995,000. C) $1,155,000. D) $987,000. E) $1,250,000. What is the operating profit or loss for the Cabinets segment?


A) $745,000.
B) $995,000.
C) $1,155,000.
D) $987,000.
E) $1,250,000.

F) A) and E)
G) A) and C)

Correct Answer

verifed

verified

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.

F) C) and D)
G) A) and B)

Correct Answer

verifed

verified

Wayne, Inc. has four operating segments with the following information: Wayne, Inc. has four operating segments with the following information: Which operating segments are separately reportable under the revenue test? A) Tables and Chairs. B) Bookcases only. C) Tables, Bookcases, and Chairs. D) Bookcases, Cabinets, and Chairs. E) Tables, Bookcases, Cabinets, and Chairs. Which operating segments are separately reportable under the revenue test?


A) Tables and Chairs.
B) Bookcases only.
C) Tables, Bookcases, and Chairs.
D) Bookcases, Cabinets, and Chairs.
E) Tables, Bookcases, Cabinets, and Chairs.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

Thompson Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2020: Thompson Corp. was engaged solely in manufacturing operations. The following data pertain to the operating segments for 2020: What is the minimum amount of profit or loss that each of these segments must earn to be considered separately reportable? A) $815,000. B) $820,200. C) $845,000. D) $902,220. E) $959,500. What is the minimum amount of profit or loss that each of these segments must earn to be considered separately reportable?


A) $815,000.
B) $820,200.
C) $845,000.
D) $902,220.
E) $959,500.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

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.

F) B) and D)
G) A) and E)

Correct Answer

verifed

verified

Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands) : Dean Hardware, Inc. is comprised of five operating segments. Information about each of these segments is as follows (in thousands) : 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. 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.

F) A) and E)
G) C) and D)

Correct Answer

verifed

verified

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.

F) C) and D)
G) D) and E)

Correct Answer

verifed

verified

Peterson Corporation has three operating segments with the following information: Peterson Corporation has three operating segments with the following information: 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. 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.

F) A) and C)
G) C) and D)

Correct Answer

verifed

verified

Which of the following items of information are required to be included in interim reports for each operating segment?Revenues from external customersSegment profit or lossReconciliation of segment profit or loss to the enterprise's total income before taxesIntersegment 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.

F) None of the above
G) C) and D)

Correct Answer

verifed

verified

Elektronix, Inc. has three operating segments with the following information: Elektronix, Inc. has three operating segments with the following information: 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. 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.

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

Peterson Corporation has three operating segments with the following information: Peterson Corporation has three operating segments with the following information: 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. 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.

F) A) and E)
G) None of the above

Correct Answer

verifed

verified

Gregor Inc. uses the LIFO cost-flow assumption to value inventory. Inventory for Gregor on January 1, 2021 was 100 units at a LIFO cost of $25 per unit. During the first quarter of 2021, 200 units were purchased costing an average of $40 per unit, and sales of 265 units at a retail price of $50 per unit were made.Assuming Gregor expects to replace the units of beginning inventory sold before the year-end at a cost of $41, what is the amount of cost of goods sold for the quarter ended March 31, 2021?

Correct Answer

verifed

verified

$10,665 [(...

View Answer

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.

F) A) and E)
G) C) and D)

Correct Answer

verifed

verified

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

Correct Answer

verifed

verified

The revenues and expenses included in se...

View Answer

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.

F) B) and C)
G) A) and C)

Correct Answer

verifed

verified

Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% and 100,000 shares of common stock issued and outstanding. The following additional information is available: Baker Corporation changed from the LIFO method to the FIFO method for inventory valuation during 2021. Baker has an effective income tax rate of 35% 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 2021, how much is reported as net income for the first quarter of 2021? A) $492,000. B) $494,800. C) $500,000. D) $505,200. E) $527,950. Assuming Baker makes the change in the first quarter of 2021, how much is reported as net income for the first quarter of 2021?


A) $492,000.
B) $494,800.
C) $500,000.
D) $505,200.
E) $527,950.

F) A) and E)
G) A) and B)

Correct Answer

verifed

verified

Wayne, Inc. has four operating segments with the following information: Wayne, Inc. has four operating segments with the following information: What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment? A) $277,000. B) $307,500. C) $279,800. D) $257,000. E) $217,600. What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?


A) $277,000.
B) $307,500.
C) $279,800.
D) $257,000.
E) $217,600.

F) B) and D)
G) C) and D)

Correct Answer

verifed

verified

Showing 21 - 40 of 120

Related Exams

Exam 19

Accounting for Estates and Trusts

85 Questions

Exam 18

Accounting and Reporting for Private Not-For-Profit Organizations

74 Questions

Exam 17

Accounting for State and Local Governments, Part II

51 Questions

Exam 16

Accounting for State and Local Governments, Part I

87 Questions

Exam 15

Partnerships: Termination and Liquidation

73 Questions

Exam 14

Partnerships: Formation and Operation

91 Questions

Exam 13

Accounting for Legal Reorganizations and Liquidations

88 Questions

Exam 12

Financial Reporting and the Securities and Exchange Commission

79 Questions

Exam 11

Worldwide Accounting Diversity and International Accounting Standards

65 Questions

Exam 10

Translation of Foreign Currency Financial Statements

101 Questions

Exam 9

Foreign Currency Transactions and Hedging Foreign Exchange Risk

108 Questions

Exam 7

Consolidated Financial Statements - Ownership Patterns and Income Taxes

127 Questions

Exam 6

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

119 Questions

Exam 5

Consolidated Financial Statements Intra-Entity Asset Transactions

126 Questions

Exam 4

Consolidated Financial Statements and Outside Ownership

128 Questions

Exam 3

Consolidations - Subsequent to the Date of Acquisition

123 Questions

Exam 2

Consolidation of Financial Information

124 Questions

Exam 1

The Equity Method of Accounting for Investments

123 Questions

Show Answer