ACC 401 Week 10 Quiz – Strayer
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Quiz 9 Chapter
14
Reporting for
Segments and for Interim Financial Periods
1. A component of an enterprise that may
earn revenues and incur expenses, and about which management evaluates separate
financial information in deciding how to allocate resources and assess
performance is a(n)
a. identifiable
segment.
b. operating segment.
c. reportable segment.
d. industry segment.
2. An entity is permitted to aggregate
operating segments if the segments are similar regarding the
a. nature of the production processes.
b. types or class of customers.
c. methods used to distribute products or
provide services.
d. all of these.
3. Which of the following is not a segment
asset of an operating segment?
a. Assets used jointly by more than one segment.
b. Assets directly associated with a segment.
c. Assets maintained for general corporate
purposes.
d. Assets used exclusively by a segment.
4. SFAS No. 131 requires the disclosure of information
on an enterprise's operations in different industries for
1. each annual period presented.
2. each interim period presented.
3. the current period only.
a. 1
b. 2
c. 3
d. both 1 and 2
5. Which of the following is not required
to be disclosed by SFAS No. 131?
a. Information concerning the enterprise's
products.
b. Information related to an enterprise's
foreign operations.
c. Information related to an enterprise's major
suppliers.
d. All of the above are required disclosures.
6. To determine whether a substantial
portion of a firm's operations are explained by its segment information, the
combined revenue from sales to unaffiliated customers of all reportable
segments must constitute at least
a. 10% of the combined revenue of all operating
segments.
b. 75% of the combined revenue of all operating
segments.
c. 10% of the combined revenue from sales to
unaffiliated customers of all operating segments.
d. 75% of the combined revenue from sales to
unaffiliated customers of all operating segments.
7. A segment is considered to be
significant if its
1. reported profit is at least 10% of the
combined profit of all operating segments.
2. reported profit (loss) is at least 10% of the
combined reported profit of all operating segments not reporting a loss.
3. reported profit (loss) is at least 10% of the
combined reported loss of all operating segments that reported a loss.
a. 1
b. 2
c. 3
d. both 2 and 3
8. Which of the following disclosures is
not required to be presented for a firm's reportable segments?
a. Information about segment assets
b. Information about the bases for measurement
c. Reconciliation of segment amounts and
consolidated amounts for revenue, profit or loss, assets, and other significant
items.
d. All of these must be presented.
9. Current authoritative pronouncements
require the disclosure of segment information when certain criteria are met.
Which of the following reflects the type of firm and type of financial
statement for which this disclosure is required?
a. Annual financial statements for publicly held
companies.
b. Annual financial statements for both publicly
held and nonpublicly held companies.
c. Annual and interim financial statements for
publicly held companies.
d. Annual and interim financial statements for
both publicly held and nonpublicly held companies.
10. An enterprise determines that it must
report segment data in annual reports for the year ended December 31, 2011.
Which of the following would not be an acceptable way of reporting segment
information?
a. Within the body of the financial statements,
with appropriate explanatory disclosures in the footnotes
b. Entirely in the footnotes to the financial
statements.
c. As a special report issued separately from
the financial statements.
d. In a separate schedule that is included as an
integral part of the financial statements.
11. Selected data for a segment of a business
enterprise are to be separately reported in accordance with SFAS No. 131 when
the revenues of the segment is 10% or more of the combined
a. net income of all segments reporting profits.
b. external and internal revenue of all
reportable segments.
c. external revenue of all reportable segments.
d. revenues of all segments reporting profits.
12. Long Corporation's revenues for the year
ended December 31, 2011, were as follows
Consolidated revenue per income statement $800,000
Intersegment sales 105,000
Intersegment transfers 35,000
Combined revenues of all operating
segments $940,000
Long has a
reportable segment if that segment's revenues exceed
a. $80,000.
b. $90,500.
c. $94,000.
d. $14,000.
13. Revenue
test
(dollars in thousands)
Wholesale Retail Finance
Segment Segment Segment
Sales
to unaffiliated customers $3,600 $1,500 $-0-
Sales
– intersegment 400 240 -0-
Loan
interest income – intersegment -0-
120 900
Loan
interest income – unaffiliated -0- 240 80
Income
from equity method investees -0- 280 -0-
Determine the amount of revenue for each
of the three segments that would be used to identify the reportable industry
segments in accordance with the revenues test specified by SFAS 131.
Wholesale Retail Finance
a. $3,600 $1,500 $ -0-
b. 4,000 1,740 -0-
c. 4,000 1,980 980
d. 4,000 2,380 980
14. Which of the following is not part of the
information about foreign operations that is required to be disclosed?
a. Revenues from external customers
b. Operating profit or loss, net income, or some
other common measure of profitability
c. Capital expenditures
d. Long-lived assets
15. Eaton, Inc., discloses supplemental
industry segment information. The following data are available for 2011.
Traceable
Segment Sales operating expenses
A $420,000 $255,000
B 480,000 300,000
C
300,000 165,000
$1,200,000 $720,000
Additional 2011
expenses, not included above, are as follows:
Indirect operating
expenses $240,000
General
corporate expenses 180,000
Appropriate common expenses are
allocated to segments based on the ratio of a segment's sales to total sales.
What should be the operating profit for Segment C for 2011?
a. $135,000
b. $ 75,000
c. $ 105,000
d. $ 30,000
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