ACCT 501 FINAL EXAM (LATEST UPDATE) REAL
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
Which test must a company use to determine which operating segments
require separate disclosure? Ans✓✓✓Revenue text, profit or loss test,
and asset test
Generally accepted accounting principles require a US corporation to
disclose the following disaggregated information for each operating
segment, except:
revenues from external customers,
unusual items,
cost of goods sold, or depreciation expenses Ans✓✓✓Cost of Goos sold
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?
The geographical location of the operations,
the nature of the production process,
distribution methods,
the nature of the regulatory environment, if applicable Ans✓✓✓The
geographical location of the operations
Which of the following statements is false concerning the number of
operating segments that should be disclosed?
, a. at least 75 percent of total company sales made to outsiders should be
presented
b. even though an operating segment has been reportable in the past and
is of continuing significance, it must meet at least one of the three
reporting tests to report separately in the current year
c. if the 75 percent rule is not met by the results of applying all three
reporting tests, additional segments must be disclosed separately despite
their failure to satisfy even one of the three quantitative thresholds
d. the practical limit to the number of operating segments is 10
Ans✓✓✓Even though an operating segment has been reportable in the
past and is of continuing significance, it must meet at least one of the
three reporting tests to report separately in the current year
What is the revenue test? Ans✓✓✓segment revenues, both external and
inter-segment, are 10 percent or more of the combined revenue, internal
and external, of all reported operating segments
What is the asset test? Ans✓✓✓segment assets are 10% or more of the
combined assets of all operating segments
What is the profit or loss test? Ans✓✓✓segment profit or loss is 10% or
more of the larger (in absolute terms) of the combined reported profit of
all profitable segments or the combined reported loss of all segments
incurring a loss
A spot rate may be defined as the Ans✓✓✓price a foreign currency can
be purchased or sold today (can change)
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
Which test must a company use to determine which operating segments
require separate disclosure? Ans✓✓✓Revenue text, profit or loss test,
and asset test
Generally accepted accounting principles require a US corporation to
disclose the following disaggregated information for each operating
segment, except:
revenues from external customers,
unusual items,
cost of goods sold, or depreciation expenses Ans✓✓✓Cost of Goos sold
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?
The geographical location of the operations,
the nature of the production process,
distribution methods,
the nature of the regulatory environment, if applicable Ans✓✓✓The
geographical location of the operations
Which of the following statements is false concerning the number of
operating segments that should be disclosed?
, a. at least 75 percent of total company sales made to outsiders should be
presented
b. even though an operating segment has been reportable in the past and
is of continuing significance, it must meet at least one of the three
reporting tests to report separately in the current year
c. if the 75 percent rule is not met by the results of applying all three
reporting tests, additional segments must be disclosed separately despite
their failure to satisfy even one of the three quantitative thresholds
d. the practical limit to the number of operating segments is 10
Ans✓✓✓Even though an operating segment has been reportable in the
past and is of continuing significance, it must meet at least one of the
three reporting tests to report separately in the current year
What is the revenue test? Ans✓✓✓segment revenues, both external and
inter-segment, are 10 percent or more of the combined revenue, internal
and external, of all reported operating segments
What is the asset test? Ans✓✓✓segment assets are 10% or more of the
combined assets of all operating segments
What is the profit or loss test? Ans✓✓✓segment profit or loss is 10% or
more of the larger (in absolute terms) of the combined reported profit of
all profitable segments or the combined reported loss of all segments
incurring a loss
A spot rate may be defined as the Ans✓✓✓price a foreign currency can
be purchased or sold today (can change)
