Segment Reporting

Question 1

The objective of ______ ______ is to provide information on the business activities and the economic environment of a company to help users of the financial statements

Answer 1

segment reporting

Question 2

An enterprise is not required to report segment ____ _____

Answer 2

cash flow

Question 3

______ does not require the disclosure of segment liabilities

Answer 3

GAAP

Question 4

GAAP and IFRS for public enterprises must report information on a company’s (4):

Answer 4

operating segments, products & services, geographic areas, major customers

Question 5

Segment reporting uses the ____ accounting principles as main financial statements

Answer 5

same

Question 6

Intercompany transactions are not ______ for reporting

Answer 6

eliminated

Question 7

Segment reporting applies to ____ _____ only

Answer 7

public companies

Question 8

An operating segment earns ____ and _____, has operating results _______ _______ by COO, and has ______ financial information available

Answer 8

revenues; expenses; regularly reviewed; discrete

Question 9

Corporate headquarters and pension plans are _____ operating segments

Answer 9

not

Question 10

In order for a segment to meet the criteria for separate reporting, one of the ____ size test must be met

Answer 10

10%

Question 11

10% size tests (3):

Answer 11

combined revenues, combined reported profit/loss, combined assets

Question 12

If the total of external consolidated revenue reported by operating segments constitutes less than ___ of external (consolidated) revenue, additional operating segments need to be identified as reportable segments, even if they do not meet the three 10% size tests, until at least ___ of external revenue is included in reportable segments

Answer 12

75% “reporting sufficiency” test

Question 13

Other business activities and operating segments that are not reportable based on the above criteria should be combined and disclosed in an “___ _____ ____” category

Answer 13

all other segments

Question 14

Segment profit/loss formula

Answer 14

Revenues (for the segment)
Less: directly traceable costs
Less: reasonably allocated costs (by the CFO)
= operating profit (or loss) (for that segment)

Question 15

General revenues & expenses, interest expense, income taxes, equity in earnings/losses of an unconsolidated subsidiary, gains/losses from discontinued operations, extraordinary items, and minority interest are normally _____ segment profit/loss

Answer 15

excluded from