Segment Reporting

Question 1

GAAP requires ______ by major segment to allow for assessment.

Answer 1

disclosures

Question 2

An ______ _______ is a significant component of operations that generates revenue and expenses, has a chief operating decision maker, and provides financial information about its operations.

Answer 2

Operating Segment

Question 3

All operating segments are reportable segments. TF

Answer 3

False

Question 4

What is a reportable segment?

Answer 4

An operating segment that meets ANY threshold of:
(1) 10% or greater of its combined revenues

(2) 10% or greater than the highest absolute P or L between the segments
(3) or 10% or greater of the COMBINED assets of all operating segments.
(4) The 75% revenue rule: (sales to unaffiliated customers/consolidated revenues) must be 75% or greater of consolidated revenues

Question 5

Generally the max amount of reportable segments is ___?

Answer 5

10

Question 6

If a single buyer account contributes greater than 10% of revenue to a firm’s total revenue, that must be disclosed. TF

Answer 6

True

Question 7

What info should a public company present about revenues from foreign operations?

Answer 7

SEPARATE disclosures of sales to customers and intracompany sales between geographical areas

Question 8

If a firms identifiable assets are > 10% of the whole it is reported. TF

Answer 8

True

Question 9

If a piece of information is reviewed by the chief operating decision maker of a segment it (is/is not) required to be disclosed.

Answer 9

Is