江西財(cái)經(jīng)大學(xué)高級(jí)財(cái)務(wù)會(huì)計(jì)國(guó)際學(xué)院題庫(kù)chapter_15

1、Advanced Accounting, 11e (Beams/Anthony/Bettinghaus/Smith)Chapter 15 Segment and Interim Financial ReportingMultiple Choice Questions1) Similar operating segments may be combined if the segments have similar economic characteristics. Which one of the following is a similar economic characteristic un

2、der GAAP?A) The segments' management teamsB) The tax reporting law sectionsC) The distribution method for products or servicesD) The expected rates of return and risk for the segments' productive assetsAnswer: CObjective: LO2Difficulty: Easy2) Which of the following conditions would not indi

3、cate that two business segments should be classified as a single operating segment?A) They have similar amounts of intersegment revenues or expenses.B) They have a similar distribution method for products.C) They have similar production processes.D) They have similar products or services.Answer: AOb

4、jective: LO2Difficulty: Easy3) GAAP requires that segment information be reportedA) by geographics, without regard to size of the segment.B) by geographics, without regard to industry or product-line.C) however management organizes the enterprise into units for internal decision-making and performan

5、ce-evaluation purposes.D) by industry or product-line, without regard to geographics.Answer: CObjective: LO1Difficulty: Easy4) GAAP requires disclosures for each reportable operating segment for each of the following, except forA) Revenues.B) Depreciation expense.C) R&D expenditures.D) Extraordi

6、nary items.Answer: CObjective: LO4Difficulty: Easy5) What is the threshold for reporting a major customer?A) 5 percent of revenuesB) 5 percent of profitsC) 10 percent of revenuesD) 10 percent of profitsAnswer: CObjective: LO6Difficulty: Easy6) Cole Company has the following 2011 financial data:Conso

7、lidated revenue per income statement$800,000Intersegment sales200,000Intersegment transfers100,000Combined revenues of all segments$1,100,000Cole Company should add segments ifA) the sum of its segments' external revenue does not exceed $600,000.B) the sum of its segments' external revenue d

8、oes not exceed $825,000.C) the sum of its segments' revenue including intersegment revenue does not exceed $600,000.D) the sum of its segments' revenue including intersegment revenue does not exceed $825,000.Answer: AExplanation: A) (75% of $800,000 = $600,000)Objective: LO3Difficulty: Moder

9、ate7) Which of the following is not a quantitative threshold for determining a reportable segment?A) Segment assets are 10% or more of the combined assets of all operating segments.B) The absolute value of a segment's profit or loss is 10% or more of the greater of (1) the combined reported prof

10、it of all operating segments that reported a profit or (2) the absolute value of the combined reported loss of all operating segments that reported a loss.C) Segment reported revenue, including intersegment revenues, is 10% or more of the combined revenue (both internal and external) of all operatin

11、g segments.D) Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.Answer: DObjective: LO2Difficulty: Easy8) For an operating segment to be considered a reporting segment under the revenue threshold, its reported revenue must be 10

12、% or more ofA) the combined enterprise revenues, eliminating all relevant intracompany transfers and balances.B) the combined revenues, excluding intersegment revenues, of all operating segments.C) the combined revenues, including intersegment revenues, of all operating segments.D) the consolidated

13、revenue of all operating segments.Answer: CObjective: LO2Difficulty: Easy9) An enterprise has eight reporting segments. Five segments show an operating profit and three segments show an operating loss. In determining which segments are classified as reporting segments under the operating profits tes

14、t, which of the following statements is correct?A) The test value for all segments is 10% of consolidated net profit.B) The test value for profitable segments is 10% or more of those segments reporting a profit, and the test value for loss segments is 10% or more of those segments reporting a loss.C

15、) The test value for loss segments is 10% of the greater of (a) the absolute value of the sum of those segments reporting losses, or (b) 10% of consolidated net profit.D) The test value for all segments is 10% of the greater of (a) the absolute value of the sum of those segments reporting profits, o

16、r (b) the absolute value of the sum of those segments reporting losses.Answer: DObjective: LO2Difficulty: Moderate10) Dott Corporation experienced a $100,000 extraordinary loss in the second quarter of 2011 in their East Coast operating segment. The loss should be recognizedA) only at the consolidat

17、ed report level at the end of the year.B) entirely in the second quarter of 2011 in the East Coast operating segment.C) in equal amounts allocated to the remaining three quarters of 2011 at the corporate level.D) in equal amounts allocated to the remaining three quarters of 2011 of the East Coast se

18、gment.Answer: BObjective: LO7Difficulty: Moderate11) Which one of the following operating segment disclosures is not required by GAAP?A) Total AssetsB) EquityC) Intersegment salesD) Extraordinary itemsAnswer: BObjective: LO4Difficulty: Easy12) Which one of the following operating segment information

19、 items is not directly named by GAAP to be reconciled to consolidated totals?A) AssetsB) LiabilitiesC) RevenuesD) Profit or lossAnswer: BObjective: LO5Difficulty: Easy13) What is the purpose of interim reporting?A) Provide shareholders with more timely informationB) Provide shareholders with more ac

20、curate informationC) Provide shareholders with more extensive detail about specific accounts and transactionsD) Provide shareholders with more current audited informationAnswer: AObjective: LO7Difficulty: Easy14) The following table is provided in the disclosures for interim reporting by Bigg Compan

21、y, regarding the location of their assets.United States$1,860,000Mexico1,270,000Canada880,000Brazil440,000Other50,000Based on the table, which of the following statements is true?A) Only the U.S. and Mexico divisions would be reportable geographic divisions.B) The U.S., Mexico and Canada divisions w

22、ould be reportable geographic divisions.C) All geographic divisions would be reportable, except for "other."D) All geographic divisions would be reportable.Answer: BExplanation: B) Total assets for all divisions = $4,500,000, therefore those divisions with at least $4,500,000 × 10% or

23、 $450,000 would be considered reportable geographic divisions.Objective: LO2Difficulty: Moderate15) Jacana Company uses the LIFO inventory method. During the second quarter, Jacana experienced a 100-unit liquidation in its LIFO inventory at a LIFO cost of $430 per unit. Jacana considered the liquida

24、tion temporary and expects to replace the units in the third quarter at an estimated replacement cost of $460 a unit. The cost of goods sold computation in the interim report for the second quarter willA) include the 100 liquidated units at the $460 estimated replacement unit cost.B) include the 100

25、 liquidated units at the $430 LIFO unit cost.C) be understated by $3,000.D) be overstated by $3,000.Answer: AObjective: LO7Difficulty: Moderate16) How does GAAP view interim accounting periods?A) As discrete units for which net income may be separately determinedB) As integral units of the entire ye

26、ar for which each interim period is an essential part of an annual periodC) As integral units of the entire year with each interim period as an independent accounting periodD) As discrete units of the entire year using the same principles that are applied to the annual periodAnswer: BObjective: LO7D

27、ifficulty: Easy17) In general, GAAP encourages the identification of reportable segments based on the following:A) Reported segments must account for at least 75% of all external and inter-segment sales.B) Reported segments must ideally account for at least 75% of all sales, unless there are many sm

28、aller divisions and separate reporting would create less clarity in reporting.C) If there are more than 10 reportable segments, the company should consider additional aggregation of their segments.D) Reported segments must account for 100% of the external sales, but only 75% of external and inter-se

29、gment sales.Answer: CObjective: LO3Difficulty: Easy18) Sandpiper Corporation paid $120,000 for annual property taxes on January 15, 2011, and $20,000 for building repair costs on March 10, 2011. Total repair expenses for the year were estimated to be $200,000, and are normally accrued during the yea

30、r until incurred. What total amount of expense for these items was reported in Sandpiper's first quarter 2011 interim income statement?A) $ 50,000B) $ 80,000C) $100,000D) $140,000Answer: BObjective: LO8Difficulty: Moderate19) The estimated taxable income for Shebill Corporation on January 1, 201

31、1, was $80,000, $100,000, $100,000, and $120,000, respectively, for each of the four quarters of 2011. Shebill's estimated annual effective tax rate was 30%. During the second quarter of 2011, the estimated annual effective tax rate was increased to 34%. Given only this information, Shebill'

32、s second quarter income tax expense wasA) $30,000.B) $34,000.C) $37,200.D) $61,200.Answer: CObjective: LO8Difficulty: Moderate20) On January 5, 2011, Eagle Corporation paid $50,000 in real estate taxes for the calendar year. In March of 2011, Eagle paid $180,000 for an annual machinery overhaul and

33、$10,000 for the annual CPA audit fee. What amount was expensed for these items on Eagle's quarterly interim financial statements?A) Quarter 1Quarter 2Quarter 3Quarter 4$202,500$12,500$12,500$12,500B) Quarter 1Quarter 2Quarter 3Quarter 4$195,000$15,000$15,000$15,000C) Quarter 1Quarter 2Quarter 3Q

34、uarter 4$67,500$57,500$57,500$57,500D) Quarter 1Quarter 2Quarter 3Quarter 4$60,000$60,000$60,000$60,000Answer: DObjective: LO8Difficulty: ModerateExercises1) The accountant for Baxter Corporation has assigned most of the company's assets to its three segments as follows:Electronics$1,760,000Hard

35、ware3,420,000Plumbing490,000Total$5,670,000The unassigned assets consist of $430,000 of unallocated goodwill and $270,000 of assets attached to the corporate headquarters. For internal decision-making purposes, goodwill is not assigned to the segments and the assets assigned to the corporate headqua

36、rters are allocated equally to the operating segments.Required:1. What is the proper threshold value to use in determining which of the operating segments shown above are reporting segments?2. Which of the operating segments are considered reporting segments?Answer: Requirement 1GAAP allows the asse

37、ts of the corporate headquarters to be included in the segments if the assets are included in the measure of the segment's assets that are reviewed by the chief operating decision maker. This interpretation would justify the exclusion of goodwill and inclusion of the corporate headquarters asset

38、s. The threshold value would be 10% times the sum of ($5,670,000 + $270,000) or $594,000.Requirement 2Using the criterion established in Requirement 1, Electronics and Hardware would both be considered reporting segments. Plumbing would not be a reporting segment because it falls below the $594,000

39、threshold value. ($490,000 + $270,000/3 = $580,000).Objective: LO2Difficulty: Moderate2) For internal decision-making purposes, Dashwood Corporation's operating segments have been identified as follows:RevenuesOperating(includesProfitIdentifiableOperating Segmentintersegmentor LossAssetsrevenues

40、)Appliances$1,100,000$(150,000)$1,200,000Clothing1,300,000(750,000)400,000Lawn and Garden850,000150,000150,000Auto Accessories1,000,000100,000200,000Service Contracts650,000(50,000)100,000Catalog Sales2,300,00050,000500,000Home Furnishings2,800,000250,0001,000,000Tools2,400,000300,000250,000$12,400,

41、000$(100,000)$3,800,000Revenues of the segments are external, with the exception of tools, which sold $400,000 to other segments, and Appliances, which sold $200,000 to other segments.Required:1. In applying the "revenue" test to identify reporting segments, what is the test value for Dash

42、wood Corporation?2. Using the "revenue" test, which of Dashwood's operating segments will also be reportable segments?Answer: Requirement 1In the revenue test, there is no separation of revenue earned from sales to other segments, thus the test value to be used is 10% of the total reve

43、nues listed, or $12,400,000 × 10% = $1,240,000.Requirement 2Reportable segments are Clothing, Catalog Sales, Home Furnishings and Tools. The revenue from these four segments does not exceed 75% of consolidated revenue of $11,800,000, which equals $8,850,000. As a result, another operating segme

44、nt, Appliances, must be reportable.Objective: LO2Difficulty: Moderate3) For internal decision-making purposes, Calam Corporation's operating segments have been identified as follows:OperatingProfitIdentifiableOperating SegmentRevenuesor LossAssetsAppliances$110,000$(15,000)$120,000Clothing130,00

45、0(75,000)40,000Lawn and Garden85,00015,00015,000Auto Accessories100,00010,00020,000Service Contracts65,000(5,000)10,000Catalog Sales230,0005,00050,000Home Furnishings280,00025,000100,000Tools240,00030,00025,000$1,240,000(10,000)$380,000Required:1.In applying the "operating profit or loss"

46、test to identify reporting segments, what is the test value for Calam Corporation?2.Using the "reported profit or loss" test, which of Calam's operating segments will also be reporting segments?Answer: Requirement 1If the absolute value of the total segments showing operating losses, $

47、95,000, is more than the absolute value of the profitable segments, $85,000, then the absolute value of the loss segments, when multiplied by 10%, would become the test value for each segment. The $95,000 is multiplied by 10% to get $9,500, which is the test value for both the profitable and loss se

48、gments.Requirement 2Using the test value of $9,500 for profit and loss of the segments, only the Service Contracts and Catalog Sales segments would not be considered reportable segments.Objective: LO2Difficulty: Moderate4) For internal decision-making purposes, Elom Corporation's operating segme

49、nts have been identified as follows:OperatingProfitIdentifiableOperating SegmentRevenuesor LossAssetsAppliances$110,000$(15,000)$120,000Lawn and Garden85,00015,00015,000Auto Accessories100,00010,00020,000Service Contracts65,000(5,000)10,000Catalog Sales230,0005,00050,000Corporate_25,000$590,000$10,0

50、00$240,000Corporate assets are typically allocated back evenly to the segments for internal analysis purposes.Required:1. In applying the "asset" test to identify reporting segments, what is the test value for Elom Corporation?2. Using the "asset" test, which of Elom's operat

51、ing segments will also be reporting segments?Answer: Requirement 1Total identifiable assets of $240,000 is multiplied by 10% to determine the test value of $24,000.Requirement 2Based on the answer to Requirement 1, Appliances, Auto Accessories and Catalog Sales would be reporting segments because th

52、eir identifiable segment assets (which would include an additional $5,000, or 1/5 of $25,000 corporate assets), meets or exceeds the test value of $24,000. Note that Corporate is not a reportable segment, but that the assets are allocated to the other divisions.Objective: LO2Difficulty: Moderate5) T

53、he following data relate to Falcon Corporation's industry segments:Sales toExternalIntersegmentIndustry SegmentCustomers Sales AssetsOil Exploration$80,000$310,000Refinery240,000720,000Plastics20,000$20,000120,000Chemicals220,000160,000980,000Solar Power20,00075,000270,000Totals$580,000$255,000$

54、2,400,000Required:1. Which of Falcon's operating segments would be considered reporting segments under the "revenue" test?2. Which of Falcon's operating segments would be considered reporting segments under the "asset" test?Answer: Requirement 1The test value is 10% of th

55、e combined revenues of all operating segments including intersegment revenues, or, 10% × $835,000 or $83,500. Based on this test value, Refinery, Chemicals, and Solar Power would be the reporting segments because each of these segments has more than $83,500 in total sales.Requirement 2The test

56、value is 10% of the combined identifiable assets or 10% × $2,400,000 or $240,000. Based on this test value, Oil Exploration, Refinery, Chemicals, and Solar Power would be the reporting segments because each of these segments has more than $240,000 in segment assets.Objective: LO2Difficulty: Mod

57、erate6) For internal decision-making purposes, Falcon Corporation identifies its industry segments by geographical area. For 2011, the total revenues of each segment are provided below. There are no intersegment revenues.TotalRevenuesCanada$22,000,000United States76,000,000Mexico10,000,000South America9,000,000China2,000,000Russia1,500,000Australia3,000,000European Union1