Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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1.
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The Jonas Company is a diversified company that discloses supplemental financial
information as to industry segments of its business. The following information is available for
20X9:
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Sales | | Traceable
Costs | | Allocable
Costs | | Product A | | $400,000 | | $225,000 | | | | Product B | | 300,000 | | 240,000 | | | | Product C | | 200,000 | | 135,000 | | | | | | 900,000 | | 600,000 | | 150,000 | | | | | | | |
Allocable costs are allocated based on the ratio of a segment's
income before allocable costs to total income before allocable costs. This should be considered
an appropriate method of allocation. What is the operating profit for Product B for
20X9?
a. | $0 | b. | $10,000 | c. | $30,000 | d. | $50,000 |
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2.
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The following information pertains to Aria Corp. and its divisions for the year
ended December 31, 20X8: | Sales to
unaffiliated customers | $2,000,000 | Intersegment sales of products similar to those sold to unaffiliated
customers | 600,000 | | Interest
earned on loans to other industry segments | 40,000 | | |
Aria and all of its divisions are engaged solely in manufacturing
operations. Aria has a reportable segment if that segment's revenue
exceeds
a. | $264,000 | b. | $260,000 | c. | $204,000 | d. | $200,000 |
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3.
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Correy Corp. and its divisions are engaged solely in manufacturing
operations. The following data (consistent with prior years' data) pertain to the
industries in which operations were conducted for the year ended December 3l, 20X9: Identifiable
Industry | | Total
revenue | | Operating profit | | assets at
l2/3l/X9 | A | | $10,000,000 | | $1,750,000 | | $20,000,000 | B | | 8,000,000 | | 1,400,000 | | 17,500,000 | C | | 6,000,000 | | 1,200,000 | | 12,500,000 | D | | 3,000,000 | | 550,000 | | 7,500,000 | E | | 4,250,000 | | 675,000 | | 7,000,000 | F | | 1,500,000 | | 225,000 | | 3,000,000 | | | | $32,750,000 | | $5,880,000 | | $67,500,000 | | | | | | | |
In its segment information for 20X9, how many reportable segments does
Correy have?
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4.
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Kaycee Corporation's revenues for the year ended December 31, 20X1, were as
follows:
Consolidated revenue per income statement | $1,200,000 | | Intersegment sales | 180,000 | | Intersegment transfers | 60,000 | Combined revenues of all industry segments | $1,440,000 | | | | | |
Kaycee has a reportable segment if that segment's revenues
exceed
a. | $ 6,000 | b. | $ 24,000 | c. | $120,000 | d. | $144,000 |
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5.
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In financial reporting for segments of a business enterprise, the operation
profit or loss of a manufacturing segment includes a portion of
General
corporate Indirect
operating
expenses
expenses
a. |
Yes
Yes | b. |
Yes
No | c. |
No
Yes | d. |
No
No |
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