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14 Cards in this Set
- Front
- Back
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b. The consolidated financial statements only |
If a financial report contains both the consolidated financial statements of a parent and the parent’s separate financial statements, segment information is required in a. The separate financial statements only b. The consolidated financial statements only c. Both the separate and consolidated financial statements d. Neither the separate nor the consolidated financial statements |
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d. All of these characterize an operating segment. |
An operating segment is a component of an entity a. That engages in business activities from which it may earn revenue and incur expenses. b. Whose operating results are regularly reviewed by the entity’s chief operating decision maker. c. For which discrete information is available. d. All of these characterize an operating segment. |
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d. The segment assets are 20% or more of the combined assets of all operating segments. |
Which quantitative threshold is not a requirement in qualifying a reportable segment? a. The segment revenue, both external and internal, is 10% or more of the combined external and internal revenue of all operating segments. b. The segment profit or loss is 10% or more of the greater between the combined profit of profitable segments and combined loss of unprofitable segments. c. The segment assets are 10% or more of the combined assets of all operating segments. d. The segment assets are 20% or more of the combined assets of all operating segments. |
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c. Segment liabilities are 10% or more of the combined liabilities of all segments. |
An operating segment is considered reportable when any of the following conditions is met, except a. Segment revenue is 10% or more of the combined revenue of all segments. b. Segment assets are 10% or more of the combined assets of all segments. c. Segment liabilities are 10% or more of the combined liabilities of all segments. d. Segment profit or loss is 10% or more of the combined profit of all segments that did not incur a loss. |
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b. May be considered reportable and separately disclosed if management believes that information about the segment would be useful to the statement users. |
Operating segments that do not meet any of the quantitative thresholds a. Cannot he considered reportable. b. May be considered reportable and separately disclosed if management believes that information about the segment would be useful to the statement users. c. May be considered reportable and separately disclosed if the information is for internal use only. d. May be considered reportable and separately disclosed if this is the practice within the economic environment. |
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c. The total external revenue of all reportable segments is 75% or more of the entity’s external revenue. |
Which statement is true concerning the 75% overall size test for reportable segments? a. The total external and internal revenue of all reportable segments is 75% or more of the entity’s external revenue. b. The total external revenue of all reportable segments is 75% or more of the entity’s external and internal revenue. c. The total external revenue of all reportable segments is 75% or more of the entity’s external revenue. d. The total internal revenue of all reportable segments is 7 5% or more of the entity’s internal revenue. |
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d. Refers to a function of allocating resources to the operating segments and assessing their performance. |
The term chief operating decision maker a. Refers to a manager with a specific title. b. Must be disclosed by title in the financial reporting for segments. c. Must be described in the disclosures for the financial reporting for segments. d. Refers to a function of allocating resources to the operating segments and assessing their performance. |
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d. The chief internal auditor who reports to the board of directors usually plays a very important role and would generally qualify as chief operating decision maker. |
Which statement is not true with respect to a chief operating decision maker? a. The term chief operating decision maker identifies a function and not necessarily a manager with a specific title. b. The chief operating decision maker could be the chief operating officer. c. The board of directors acting collectively could qualify as the chief operating decision maker. d. The chief internal auditor who reports to the board of directors usually plays a very important role and would generally qualify as chief operating decision maker. |
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b. Revenue test, asset test and profit or loss test |
For segment reporting, which tests must be applied to determine if an operating segment is reportable? 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 |
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c. Management approach |
The approach used in segment reporting is known as a. Segment approach b. Revenue approach c. Management approach d. Enterprise approach |
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c. Management approach |
The approach used in segment reporting is known as a. Segment approach b. Revenue approach c. Management approach d. Enterprise approach |
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d. Information about intersegment sales |
Entity-wide disclosures include all, except a. Information about products and services b. Information about geographical areas c. Information about major customers d. Information about intersegment sales |
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d. All of these statements are true about major customer disclosures. |
Which statement is true about major customer disclosure? a. A major customer is defined as one providing revenue which amounts to 10% or more of combined external revenue of all operating segments. b. The identities of major customers need not be disclosed. c. The entity shall disclose the total amount of revenue from major customers. d. All of these statements are true about major customer disclosures. |
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b. The title of the chief operating decision maker. |
In financial reporting for operating segments, an entity shall disclose all of the following, except a. Type of products and services from which each reportable segment derives revenue. b. The title of the chief operating decision maker. c. Factors used to identify the reportable segments. d. The basis of measurement of segment profit or loss. |
