江西财经大学高级财务会计国际学院题库chapter15.docx

江西财经大学高级财务会计国际学院题库chapter15.docx

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江西财经大学高级财务会计国际学院题库chapter15

AdvancedAccounting,11e（Beams/Anthony/Bettinghaus/Smith）

Chapter15SegmentandInterimFinancialReporting

MultipleChoiceQuestions

1）Similaroperatingsegmentsmaybecombinedifthesegmentshavesimilareconomiccharacteristics.WhichoneofthefollowingisasimilareconomiccharacteristicunderGAAP?

A）Thesegments'managementteams

B）Thetaxreportinglawsections

C）Thedistributionmethodforproductsorservices

D）Theexpectedratesofreturnandriskforthesegments'productiveassets

Answer:

C

Objective:

LO2

Difficulty:

Easy

2）Whichofthefollowingconditionswouldnotindicatethattwobusinesssegmentsshouldbeclassifiedasasingleoperatingsegment?

A）Theyhavesimilaramountsofintersegmentrevenuesorexpenses.

B）Theyhaveasimilardistributionmethodforproducts.

C）Theyhavesimilarproductionprocesses.

D）Theyhavesimilarproductsorservices.

Answer:

A

Objective:

LO2

Difficulty:

Easy

3）GAAPrequiresthatsegmentinformationbereported

A）bygeographics,withoutregardtosizeofthesegment.

B）bygeographics,withoutregardtoindustryorproduct-line.

C）howevermanagementorganizestheenterpriseintounitsforinternaldecision-makingandperformance-evaluationpurposes.

D）byindustryorproduct-line,withoutregardtogeographics.

Answer:

C

Objective:

LO1

Difficulty:

Easy

4）GAAPrequiresdisclosuresforeachreportableoperatingsegmentforeachofthefollowing,exceptfor

A）Revenues.

B）Depreciationexpense.

C）R&Dexpenditures.

D）Extraordinaryitems.

Answer:

C

Objective:

LO4

Difficulty:

Easy

5）Whatisthethresholdforreportingamajorcustomer?

A）5percentofrevenues

B）5percentofprofits

C）10percentofrevenues

D）10percentofprofits

Answer:

C

Objective:

LO6

Difficulty:

Easy

6）ColeCompanyhasthefollowing2011financialdata:

Consolidatedrevenueperincomestatement$800,000

Intersegmentsales200,000

Intersegmenttransfers100,000

Combinedrevenuesofallsegments$1,100,000

ColeCompanyshouldaddsegmentsif

A）thesumofitssegments'externalrevenuedoesnotexceed$600,000.

B）thesumofitssegments'externalrevenuedoesnotexceed$825,000.

C）thesumofitssegments'revenueincludingintersegmentrevenuedoesnotexceed$600,000.

D）thesumofitssegments'revenueincludingintersegmentrevenuedoesnotexceed$825,000.

Answer:

A

Explanation:

A）（75%of$800,000=$600,000）

Objective:

LO3

Difficulty:

Moderate

7）Whichofthefollowingisnotaquantitativethresholdfordeterminingareportablesegment?

A）Segmentassetsare10%ormoreofthecombinedassetsofalloperatingsegments.

B）Theabsolutevalueofasegment'sprofitorlossis10%ormoreofthegreaterof

（1）thecombinedreportedprofitofalloperatingsegmentsthatreportedaprofitor

（2）theabsolutevalueofthecombinedreportedlossofalloperatingsegmentsthatreportedaloss.

C）Segmentreportedrevenue,includingintersegmentrevenues,is10%ormoreofthecombinedrevenue（bothinternalandexternal）ofalloperatingsegments.

D）Segmentresidualprofitafterthecostofequityis10%ormoreofthecombinedresidualprofitofalloperatingsegments.

Answer:

D

Objective:

LO2

Difficulty:

Easy

8）Foranoperatingsegmenttobeconsideredareportingsegmentundertherevenuethreshold,itsreportedrevenuemustbe10%ormoreof

A）thecombinedenterpriserevenues,eliminatingallrelevantintracompanytransfersandbalances.

B）thecombinedrevenues,excludingintersegmentrevenues,ofalloperatingsegments.

C）thecombinedrevenues,includingintersegmentrevenues,ofalloperatingsegments.

D）theconsolidatedrevenueofalloperatingsegments.

Answer:

C

Objective:

LO2

Difficulty:

Easy

9）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:

D

Objective:

LO2

Difficulty:

Moderate

10）DottCorporationexperienceda$100,000extraordinarylossinthesecondquarterof2011intheirEastCoastoperatingsegment.Thelossshouldberecognized

A）onlyattheconsolidatedreportlevelattheendoftheyear.

B）entirelyinthesecondquarterof2011intheEastCoastoperatingsegment.

C）inequalamountsallocatedtotheremainingthreequartersof2011atthecorporatelevel.

D）inequalamountsallocatedtotheremainingthreequartersof2011oftheEastCoastsegment.

Answer:

B

Objective:

LO7

Difficulty:

Moderate

11）WhichoneofthefollowingoperatingsegmentdisclosuresisnotrequiredbyGAAP?

A）TotalAssets

B）Equity

C）Intersegmentsales

D）Extraordinaryitems

Answer:

B

Objective:

LO4

Difficulty:

Easy

12）WhichoneofthefollowingoperatingsegmentinformationitemsisnotdirectlynamedbyGAAPtobereconciledtoconsolidatedtotals?

A）Assets

B）Liabilities

C）Revenues

D）Profitorloss

Answer:

B

Objective:

LO5

Difficulty:

Easy

13）Whatisthepurposeofinterimreporting?

A）Provideshareholderswithmoretimelyinformation

B）Provideshareholderswithmoreaccurateinformation

C）Provideshareholderswithmoreextensivedetailaboutspecificaccountsandtransactions

D）Provideshareholderswithmorecurrentauditedinformation

Answer:

A

Objective:

LO7

Difficulty:

Easy

14）ThefollowingtableisprovidedinthedisclosuresforinterimreportingbyBiggCompany,regardingthelocationoftheirassets.

UnitedStates

$1,860,000

Mexico

1,270,000

Canada

880,000

Brazil

440,000

Other

50,000

Basedonthetable,whichofthefollowingstatementsistrue?

A）OnlytheU.S.andMexicodivisionswouldbereportablegeographicdivisions.

B）TheU.S.,MexicoandCanadadivisionswouldbereportablegeographicdivisions.

C）Allgeographicdivisionswouldbereportable,exceptfor"other."

D）Allgeographicdivisionswouldbereportable.

Answer:

B

Explanation:

B）Totalassetsforalldivisions=$4,500,000,thereforethosedivisionswithatleast$4,500,000×10%or$450,000wouldbeconsideredreportablegeographicdivisions.

Objective:

LO2

Difficulty:

Moderate

15）JacanaCompanyusestheLIFOinventorymethod.Duringthesecondquarter,Jacanaexperienceda100-unitliquidationinitsLIFOinventoryataLIFOcostof$430perunit.Jacanaconsideredtheliquidationtemporaryandexpectstoreplacetheunitsinthethirdquarteratanestimatedreplacementcostof$460aunit.Thecostofgoodssoldcomputationintheinterimreportforthesecondquarterwill

A）includethe100liquidatedunitsatthe$460estimatedreplacementunitcost.

B）includethe100liquidatedunitsatthe$430LIFOunitcost.

C）beunderstatedby$3,000.

D）beoverstatedby$3,000.

Answer:

A

Objective:

LO7

Difficulty:

Moderate

16）HowdoesGAAPviewinterimaccountingperiods?

A）Asdiscreteunitsforwhichnetincomemaybeseparatelydetermined

B）Asintegralunitsoftheentireyearforwhicheachinterimperiodisanessentialpartofanannualperiod

C）Asintegralunitsoftheentireyearwitheachinterimperiodasanindependentaccountingperiod

D）Asdiscreteunitsoftheentireyearusingthesameprinciplesthatareappliedtotheannualperiod

Answer:

B

Objective:

LO7

Difficulty:

Easy

17）Ingeneral,GAAPencouragestheidentificationofreportablesegmentsbasedonthefollowing:

A）Reportedsegmentsmustaccountforatleast75%ofallexternalandinter-segmentsales.

B）Reportedsegmentsmustideallyaccountforatleast75%ofallsales,unlesstherearemanysmallerdivisionsandseparatereportingwouldcreatelessclarityinreporting.

C）Iftherearemorethan10reportablesegments,thecompanyshouldconsideradditionalaggregationoftheirsegments.

D）Reportedsegmentsmustaccountfor100%oftheexternalsales,butonly75%ofexternalandinter-segmentsales.

Answer:

C

Objective:

LO3

Difficulty:

Easy

18）SandpiperCorporationpaid$120,000forannualpropertytaxesonJanuary15,2011,and$20,000forbuildingrepaircostsonMarch10,2011.Totalrepairexpensesfortheyearwereestimatedtobe$200,000,andarenormallyaccruedduringtheyearuntilincurred.WhattotalamountofexpensefortheseitemswasreportedinSandpiper'sfirstquarter2011interimincomestatement?

A）$50,000

B）$80,000

C）$100,000

D）$140,000

Answer:

B

Objective:

LO8

Difficulty:

Moderate

19）TheestimatedtaxableincomeforShebillCorporationonJanuary1,2011,was$80,000,$100,000,$100,000,and$120,000,respectively,foreachofthefourquartersof2011.Shebill'sestimatedannualeffectivetaxratewas30%.Duringthesecondquarterof2011,theestimatedannualeffectivetaxratewasincreasedto34%.Givenonlythisinformation,Shebill'ssecondquarterincometaxexpensewas

A）$30,000.

B）$34,000.

C）$37,200.

D）$61,200.

Answer:

C

Objective:

LO8

Difficulty:

Moderate

20）OnJanuary5,2011,EagleCorporationpaid$50,000inrealestatetaxesforthecalendaryear.InMarchof2011,Eaglepaid$180,000foranannualmachineryoverhauland$10,000fortheannualCPAauditfee.Whatamountwasexpensedfortheseite