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Copyright 漏
2012 Pearson Education, Inc. Publishing as Prentice Hall
Advanced Accounting, 11e
(Beams/Anthony/Bettinghaus/Smith)
Chapter 15
Segment and Interim Financial Reporting
Multiple Choice Questions
1) Similar operating segments may be combined if the segments have similar economic characteristics.
Which one of the following is a similar economic characteristic under GAAP?
A) The segments' management teams
B) The tax reporting law sections
C) The distribution method for products or services
D) The expected rates of return and risk for the segments' productive assets
Answer:
C
Objective:
LO2
Difficulty:
Easy
2) Which of the following conditions would not indicate that two business segments should be classified
as a single operating segment?
A) They have similar amounts of intersegment revenues or expenses.
B) They have a similar distribution method for products.
C) They have similar production processes.
D) They have similar products or services.
Answer:
A
Objective:
LO2
Difficulty:
Easy
3) GAAP requires that segment information be reported
A) by geographics, without regard to size of the segment.
B) by geographics, without regard to industry or product
-
line.
C) however management organizes the enterprise into units for internal decision
-
making and
performance
-
evaluation purposes.
D) by industry or product
-
line, without regard to geographics.
Answer:
C
Objective:
LO1
Difficulty:
Easy
4) GAAP requires disclosures for each reportable operating segment for each of the following, except for
A) Revenues.
B) Depreciation expense.
C) R&D expenditures.
D) Extraordinary items.
Answer:
C
Objective:
LO4
Difficulty:
Easy