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Flashcards in MISCC Deck (21):
1

In financial reporting for segments of business enterprise, segment data may be aggregated

Before performing the 10% tests if all of the aggregation criteria are met. 

2

Which of the following types of entities are required to report on business segments?

a. Not-for-profit enterprises.

b. Nonpublic business enterprises.

c. Joint ventures.

d. Publicly traded enterprises. 

 Publicly traded enterprises.

3

Carrey Corp. and its divisions are engaged solely in manufacturing operations (each is an operating segment). The following data (consistent with prior years' data) pertain to the industries in Which operations were conducted for the year ended December 31, year I:

Industry    Total revenue    Operating profit     Segment assets 12/31/Y1

A              $10,000,000      $1,750,000            $20,000,000

B                  8,000,000        1,400,000              17,500,000

C                  6,000,000        1,200,000              12,500,000

D                  3,000,000          550,000               7,500,000

E                   4,250,000          675,000               7,000,000

F                   1,500,000           225,000               3,000,000

                   32,750,000        5,800,000             67,500,000

In its segment information for year 1, how many reportable segments does Correy have?

5

4

Riley Corp., publicly owned corporation, assesses performance and makes operating decisions using the following information for its reportable segments:

Total revenues    $925,000

Total profit                83,000

Included in the total profit and loss is interest expense of $10,000. In addition, Riley has $1,500 of interest income for its reportable segments that is not included in the reports used internally. For purposes of segment reporting, Riley should report segment profit of 

$83,000

5

The following information pertains to Been Corp. and its operating segments for the year ended December 31, year I:

Total revenues                                                  $80,000,000

Sales to external customers (included in total)   $30,000,000

In its financial statements, Been should disclose major customer data if sales to any single customer amount to at least 

$8,000,000

6

Enterprise-wide disclosures include disclosures about

a. Products and services and Depreciation expense

b. Products and services

c. Depreciation expense

d. Neither

Products and services

7

Under IFRS, the approach used in segment reporting is known as 

Management approach.

8

In financial reporting of segment data, which of the following must be considered in determining if an industry segment is reportable segment?

a. Sales to unaffiliated customers and intersegment sales

b. Sales to unaffiliated customers

c. Intersegment sales

d. Neither

Sales to unaffiliated customers and intersegment sales

9

The following information pertains to Klein Corp and its operationg segments for year ended December 31, year 1:

Combined profit of segments reporting profit  $600,000

Combined loss of segments reporting loss      (400,000)

Combined profit and loss of all segments          200,000

Klein has a reportable segment if that segment's operating profit or loss is

$60,000 profit

10

An enterprise must separately report information about an operating segment when the segment's revenue meets what minimum percentage of the combined revenue of the reported operating segments? 

10%

11

The method used to determine what information to report for business segments is referred to as the 

Management approach. 

12

The method used to determine what information to report for business segments is referred to as the 

Management approach. 

13

Opto Co. is a publicly traded, consolidated enterprise reporting segment information. Which of the following items is required enterprise-wide disclosure regarding external customers?

a. The identity of any external customer providing 10% or more of particular operating segment's revenue.

b. Information on major customers is not required in segment reporting.

c. The identity of any external customer considered to be "major" by management.

d. The fact that transactions with particular external customer constitute more than of the total enterprise revenues.

The fact that transactions with particular external customer constitute more than of the total enterprise revenues

14

The term chief operating decision maker 

Refers to a function. 

15

Which of the following factors determines whether an identified segment of an enterprise should be reported in the enterprise's financial statements under ASC Topic 280 , Segment Reporting?

I. The segment's assets constitute more than 10% of the combined assets of all operating segments.

Il. The segment's liabilities constitute more than of the combined liabilities of all operating segments. 

I only

16

The following information pertains to Been Corp. and its operating segments for the year ended December 31, year I:

Total revenues                                                 $80,000,000

Sales to external customers (included in total)  $30,000,000

External revenue reported by reportable operating segments must be at least

$22,500,000

17

Which of the following qualifies as an operating segment?

a. Eastern Europe segment, which reports its results directly to the manager of the European division, and has 20% of the company's assets, 12% of revenues, and of profits.

b. South American segment, whose results of operations are reported directly to the chief operating officer, and has 5% of the company's assets, 9% of revenues, and 8% of the profits.

c. North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.

d. Corporate headquarters, which oversees $1 billion in sales for the entire company. 

North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer. 

18

An enterprise must disclose all of the following about each reportable segment if the amounts are used by the chief operating decision maker, except

a. Intersegment revenues.

b. Cost of goods sold.

c. Income tax expense.

d. Unusual items. 

Cost of goods sold

19

Which of the following should be disclosed for each reportable operating segment of an enterprise?

a. Profit or loss and Total assets 

b. Profit or loss

c. Total assets

d. Neither

Profit or loss and Total assets 

20

Enterprise-wide disclosures are required by

a. A public company with only reportable segment

b. A public company with only reportable segment and A not-for-profit organization with several reportable segments.

c. A not-for-profit organization with several reportable segments.

d. Neither

A public company with only reportable segment

21

Under IFRS, all of the following are thresholds for determining if an operating segment is reportable segment, except:

a. The segment assets are 10% or more of the combined assets of all segments.

b. The segment revenue is 10% or more of combined revenue of all segments.

c. The absolute value of the segment profit or loss is 10% or more than the greater of the absolute (I) combined reported profit of all segments not reporting loss or (2) combined reported loss of all segments reporting a loss.

d. The segment assets are 15% or more of the combined assets of all segments. 

The segment assets are 15% or more of the combined assets of all segments.