江西财经大学高级财务会计国际学院题库chapter_15

1Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHallAdvancedAccounting,11e(Beams/Anthony/Bettinghaus/Smith)Chapter15SegmentandInterimFinancialReportingMultipleChoiceQuestions1)Similaroperatingsegmentsmaybecombinedifthesegmentshavesimilareconomiccharacteristics.WhichoneofthefollowingisasimilareconomiccharacteristicunderGAAP?A)Thesegments'managementteamsB)ThetaxreportinglawsectionsC)ThedistributionmethodforproductsorservicesD)Theexpectedratesofreturnandriskforthesegments'productiveassetsAnswer:CObjective:LO2Difficulty:Easy2)Whichofthefollowingconditionswouldnotindicatethattwobusinesssegmentsshouldbeclassifiedasasingleoperatingsegment?A)Theyhavesimilaramountsofintersegmentrevenuesorexpenses.B)Theyhaveasimilardistributionmethodforproducts.C)Theyhavesimilarproductionprocesses.D)Theyhavesimilarproductsorservices.Answer:AObjective:LO2Difficulty:Easy3)GAAPrequiresthatsegmentinformationbereportedA)bygeographics,withoutregardtosizeofthesegment.B)bygeographics,withoutregardtoindustryorproduct-line.C)howevermanagementorganizestheenterpriseintounitsforinternaldecision-makingandperformance-evaluationpurposes.D)byindustryorproduct-line,withoutregardtogeographics.Answer:CObjective:LO1Difficulty:Easy4)GAAPrequiresdisclosuresforeachreportableoperatingsegmentforeachofthefollowing,exceptforA)Revenues.B)Depreciationexpense.C)R&Dexpenditures.D)Extraordinaryitems.Answer:CObjective:LO4Difficulty:Easy2Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHall5)Whatisthethresholdforreportingamajorcustomer?A)5percentofrevenuesB)5percentofprofitsC)10percentofrevenuesD)10percentofprofitsAnswer:CObjective:LO6Difficulty:Easy6)ColeCompanyhasthefollowing2011financialdata:Consolidatedrevenueperincomestatement$800,000Intersegmentsales200,000Intersegmenttransfers100,000Combinedrevenuesofallsegments$1,100,000ColeCompanyshouldaddsegmentsifA)thesumofitssegments'externalrevenuedoesnotexceed$600,000.B)thesumofitssegments'externalrevenuedoesnotexceed$825,000.C)thesumofitssegments'revenueincludingintersegmentrevenuedoesnotexceed$600,000.D)thesumofitssegments'revenueincludingintersegmentrevenuedoesnotexceed$825,000.Answer:AExplanation:A)(75%of$800,000=$600,000)Objective:LO3Difficulty:Moderate7)Whichofthefollowingisnotaquantitativethresholdfordeterminingareportablesegment?A)Segmentassetsare10%ormoreofthecombinedassetsofalloperatingsegments.B)Theabsolutevalueofasegment'sprofitorlossis10%ormoreofthegreaterof(1)thecombinedreportedprofitofalloperatingsegmentsthatreportedaprofitor(2)theabsolutevalueofthecombinedreportedlossofalloperatingsegmentsthatreportedaloss.C)Segmentreportedrevenue,includingintersegmentrevenues,is10%ormoreofthecombinedrevenue(bothinternalandexternal)ofalloperatingsegments.D)Segmentresidualprofitafterthecostofequityis10%ormoreofthecombinedresidualprofitofalloperatingsegments.Answer:DObjective:LO2Difficulty:Easy8)Foranoperatingsegmenttobeconsideredareportingsegmentundertherevenuethreshold,itsreportedrevenuemustbe10%ormoreofA)thecombinedenterpriserevenues,eliminatingallrelevantintracompanytransfersandbalances.B)thecombinedrevenues,excludingintersegmentrevenues,ofalloperatingsegments.C)thecombinedrevenues,includingintersegmentrevenues,ofalloperatingsegments.D)theconsolidatedrevenueofalloperatingsegments.Answer:CObjective:LO2Difficulty:Easy3Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHall9)Anenterprisehaseightreportingsegments.Fivesegmentsshowanoperatingprofitandthreesegmentsshowanoperatingloss.Indeterminingwhichsegmentsareclassifiedasreportingsegmentsundertheoperatingprofitstest,whichofthefollowingstatementsiscorrect?A)Thetestvalueforallsegmentsis10%ofconsolidatednetprofit.B)Thetestvalueforprofitablesegmentsis10%ormoreofthosesegmentsreportingaprofit,andthetestvalueforlosssegmentsis10%ormoreofthosesegmentsreportingaloss.C)Thetestvalueforlosssegmentsis10%ofthegreaterof(a)theabsolutevalueofthesumofthosesegmentsreportinglosses,or(b)10%ofconsolidatednetprofit.D)Thetestvalueforallsegmentsis10%ofthegreaterof(a)theabsolutevalueofthesumofthosesegmentsreportingprofits,or(b)theabsolutevalueofthesumofthosesegmentsreportinglosses.Answer:DObjective:LO2Difficulty:Moderate10)DottCorporationexperienceda$100,000extraordinarylossinthesecondquarterof2011intheirEastCoastoperatingsegment.ThelossshouldberecognizedA)onlyattheconsolidatedreportlevelattheendoftheyear.B)entirelyinthesecondquarterof2011intheEastCoastoperatingsegment.C)inequalamountsallocatedtotheremainingthreequartersof2011atthecorporatelevel.D)inequalamountsallocatedtotheremainingthreequartersof2011oftheEastCoastsegment.Answer:BObjective:LO7Difficulty:Moderate11)WhichoneofthefollowingoperatingsegmentdisclosuresisnotrequiredbyGAAP?A)TotalAssetsB)EquityC)IntersegmentsalesD)ExtraordinaryitemsAnswer:BObjective:LO4Difficulty:Easy12)WhichoneofthefollowingoperatingsegmentinformationitemsisnotdirectlynamedbyGAAPtobereconciledtoconsolidatedtotals?A)AssetsB)LiabilitiesC)RevenuesD)ProfitorlossAnswer:BObjective:LO5Difficulty:Easy4Copyright©2012PearsonEducation,Inc.PublishingasPrenticeHall13