Chapter 13. Segment and Interim Reporting. Learning Objective 13-1. Understand accounting issues associated with segment reporting both in the United States and internationally. Segment Reporting Accounting Issues. ASC 280 - A management approach to the definition of segments
Understand accounting issues associated with segment reporting both in the United States and internationally.
Which of the following is NOT one of the characteristics of an operating segment?
a. The component unit’s business activities generate revenue and incur expenses.
b. The component unit’s operating results are regularly reviewed by the entity’s chief operating decision maker.
c. The component unit can be identified with a standard industry code assigned by the federal government.
Understand and be able to calculate threshold tests for segment reporting.
Which of the following is NOT one of the 10% thresholds for defining an operating segment?
a. 10% of revenues.
b. 10% of cost of goods sold.
c. 10% of profit (or loss).
Understand the requirements for enterprise-wide disclosures.
Which of the following is NOT true about enterprise-wide disclosures?
a. The auditor determines the materiality threshold for these disclosures.
b. A company is required to report revenues for each major product and service or each group of similar products and services.
c. Company’s must report revenues attributed to the company’s home country and the revenue from external customers attributed to all foreign countries.
Understand the rules for interim financial reporting.
Income taxes in interim periods
Which of the following is NOT an item required in quarterly financial reports?
a. An income statement for the quarter.
b. Income statements for the cumulative year-to-date time period.
c. A condensed balance sheet at the end of the current quarter.