Question 1

In financial reporting of segment data, which of the following must be considered in determining if an industry segment is a reportable segment?

Options :

A : Option A

B : Option B

C : Option C

D : Option D

Answer: A

Question 2

Which of the following should be disclosed for each reportable operating segment of an enterprise?

Options :

A : Option A

B : Option B

C : Option C

D : Option D

Answer: A

Question 3

In which of the following situations should a company report a prior-period adjustment?

Options :

A : A change in the estimated useful lives of fixed assets purchased in prior years.

B : The correction of a mathematical error in the calculation of prior years' depreciation.

C : A switch from the straight-line to double-declining balance method of depreciation.

D : The scrapping of an asset prior to the end of its expected useful life.

Answer: B

Question 4

Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?

Options :

A : Option A

B : Option B

C : Option C

D : Option D

Answer: C

Question 5

In general, an enterprise preparing interim financial statements should:

Options :

A : Defer recognition of seasonal revenue.

B : Disregard permanent decreases in the market value of its inventory.

C : Allocate revenues and expenses evenly over the quarters, regardless of when they actually occurred.

D : Use the same accounting principles followed in preparing its latest annual financial statements.

Answer: D