1. Generally accepted accounting principles require a U.S. corporation to
disclose the following disaggregated information for each operating segment,
except:
2. Which tests must a company use to determine which operating segments
require separate disclosure?
3. Coulanger Corp. identified four operating segments: A, B, C, and D.
Segment A met the
revenue test
for identifying reportable segments while
Segment C met the
revenue test
,
profit or loss test
, and
asset test
. Segment B
and Segment D did not meet any of these tests. Which of these segments must
be disclosed separately?
4. Kaycee Corporation’s revenues for the year ended December 31, 2010,
were as follows:
Consolidated Revenue per the Income Statement: $1,200,000
Upstream Intersegment Sales: $180,000
Downstream Intersegment Sales: $60,000
For purposes of the Revenue Test, what amount will be used as the benchmark
for determining whether a segment is reportable?
5. Natarajan, Inc. had the following operating segments, with the indicated
amounts of
segment revenues
and
segment expenses
:
According to the
revenue test
, which segments would require disaggregation?
6. Natarajan, Inc. had the following operating segments, with the indicated
amounts of
segment revenues
and
segment expenses
:
According to the
profit or loss test
, which segments would require
disaggregation?
7. Natarajan, Inc. had the following operating segments, with the indicated
amounts of
segment revenues
and
segment expenses
:
For purposes of the profit or loss test, segment C’s operating profit or (loss) is
8. Natarajan, Inc. had the following operating segments, with the indicated
amounts of
segment revenues
and
segment expenses
:
When totaling the revenues to use as the basis for the 75% rule, what is the 75%
hurdle that must be exceeded by the revenues of the reportable segments?
9. When defining a reportable segment, which of the following conditions
would be sufficient to allow a company to combine two operating segments for
purposes of testing?
10. The Fratilo Co. had three operating segments with the following
information:
In addition, revenues generated at corporate headquarters are $1,400.
Combined segment revenues
are calculated to be
11. The Fratilo Co. had three operating segments with the following
information:
In addition, revenues generated at corporate headquarters are $1,400.
What is the
minimum amount of revenue
that each of these segments must earn
to be considered separately reportable?
12. The Rivers Co. had four separate operating segments:
What amount of revenues must be generated from one customer before that
party must be identified as a
major customer
?
13. Which one of the following items
must
be disclosed for all reportable
operating segments in the notes to financial statements?
(I.) Revenue from external customers.
(II.) Total Segment Assets
(III.) Revenues from foreign customers, identified by country.
14. Kurves Corp. had six different operating segments reporting the following
operating profit and loss figures:
Which one of the following statements is true?
15. Retro Corp. was engaged solely in manufacturing operations. The following
data pertain to the operating segments for 2011:
What is the
minimum amount of revenue
that each of these segments must earn
to be considered separately reportable?
16. Retro Corp. was engaged solely in manufacturing operations. The following
data pertain to the operating segments for 2011:
What is the
minimum amount of profit or loss
that each of these segments must
earn to be considered separately reportable?
17. Retro Corp. was engaged solely in manufacturing operations. The following
data pertain to the operating segments for 2011:
What is the
minimum amount of assets
that each of these segments must own to
be considered separately reportable?
18. Which of the following statements is true regarding the determination of
operating segments in order to decide which segments will be separately
reported?
19. A company that generates reports by both geographic region and product
line must consider additional criteria in identifying operating segments when
there are multiple sets of reports. Which of the following statement(s) is correct?
(I.) An operating segment has a segment manager who is directly accountable to
the chief operating decision maker for its financial performance.
(II.) If more than one set of organizational units exists, each organizational unit is
considered an operating segment even if there is only one set for which segment
managers are held responsible.
(III.) If segment managers exist for two or more overlapping sets of organizational
units, the nature of the business activities must be considered.
20. Which of the following is
not
one of the criteria management should
consider in determining whether business activities and environments of an
operating segment are similar?
21. The hardware operating segment of Bloom Corporation has the following
revenues for the year ended December 31, 2011:
For purposes of the revenue test, what amount will be used as total revenues of
the hardware operating segment?