[TFA] Accounting Changes Flashcards
Entity-wide disclosures include all, EXCEPT
a. Information about products
b. Information about geographical areas
c. Information about major customers
d. Information about intersegment revenue
ANS: d. Information about intersegment revenue
Which of the following is a required enterprise-wide disclosure regarding external customers?
a. The identity of any external customer considered to be major by management
b. The identity of any external customer providing 10% or more of a particular operating segment revenue
c. Information on major customers is not required in segment reporting
d. The fact that transactions with a particular external customer constitute at least 10% of the total entity revenue
ANS: d. The fact that transactions with a particular external customer constitute at least 10% of the total entity revenue
Which entity is required to report on business segments?
a. Publicly traded
b. Not-for-profit
c. Joint venture
d. Nonpublic
ANS: a. Publicly traded
An entity must disclose all of the following about each reportable segment if the amounts are used by the chief operating decision maker, EXCEPT
a. Depreciation expense
b. Allocated expense
c. Interest expense
d. Income tax expense
b. Allocated expense
An entity shall disclose for each reportable segment all of the following specified amounts included in the measure of profit or loss, EXCEPT
a. Revenue from external customers
b. Revenue from internal customers
c. Interest revenue
d. Gain on disposal of investment
ANS: d. Gain on disposal of investment
An entity shall disclose for each reportable segment all of the following specified amounts included in the measure of profit or loss, EXCEPT
a. Depreciation and amortization
b. The entity’s interest in the profit or loss of associate
c. Income tax expense
d. General corporate expenses
d. General corporate expenses
An entity must disclose all of the following about each reportable segment if the amounts are used by the chief operating decision maker, EXCEPT
a. Unusual items
b. Income tax expense
c. Intersegment revenue
d. Cost of goods sold
d. Cost of goods sold
For segment reporting purposes, which test must be applied to determine if a component is a reportable operating segment?
a. Revenue test and asset test
b. Revenue test, asset test, and profit or loss test
c. Revenue test, asset test, and expense test
d. Revenue test, asset test, and cash flow test
ANS: b. Revenue test, asset test, and profit or loss test
What is the practical limit to the number of reportable operating segments?
a. Five segments
b. Ten segments
c. Six segments
d. Four segments
ANS: b. Ten segments
The approach used in segment reporting is known as
a. Segment approach
b. Revenue approach
c. Management approach
d. Enterprise approach
ANS: c. Management approach