Question

How should an entity perform the 10% test when each of its operating segments reports different measures of segment profitability and segment assets?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Management

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: The budgeted balance sheet is part of which element of the master budget? a. Financial budget b. Ope...

A: Budgeted Balance Sheet: Management uses to predict the assets , liabilities and Stock holders equity...

Q: Al Ahlia Corporation incurred the following transactions. Purchased raw materials on account $56,30...

A: S.no. Accounts Titles and Explanation Debit ($) Credit ($) 1 Raw material Inventory 56,300      ...

Q: Massi pharmacies, Inc. started operations on January 1 2X11. The company used the average cost metho...

A: Click to see the answer

Q: Preparing a financial budget—budgeted income statement and balance sheet Ballentine Company has the ...

A: 1.  

Q: What is a potential disadvantage of the reciprocal method? a. It is the most complex method of cost ...

A: Reciprocal method: It is the method in which the allocation of costs spent on other departments by t...

Q: Preparing variable and absorption costing income statements Claudia’s Foods produces frozen meals th...

A: Product cost per meal under variable costing = Variable manufacturing overhead per meal = $5 per mea...

Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a. ...

A: Option c is the answer.  

Q: If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45, ...

A: Contribution margin per unit  = Sales price price unit - Variable cost per unit Contribution margin ...

Q: Summarized transactions for January 2016 were as follows Repair services performed during January: ...

A: Journal entries are the record of all financial transactions entered by a business.

Q: brower bloom has preference shares outstanding that pay a dividend of R7,50 per share at the end of ...

A: Preference shares are a special type of shares which pay annual dividend irrespective of the profit/...

Q: Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per un...

A: 1. Variable cost of goods sold = Direct materials + direct labor + variable manufacturing overhead =...

Q: 1.​A department store apportions payroll costs on the basis of the number of payroll checks issued. ...

A: Payroll expense refers to all the costs which are incurred by the employer for giving compensation b...

Q: Rachel is a financial investor who actively buys and sells in the securities market. Now she has apo...

A: Weights of assets are computed below: The formula sheet used for computing the above table as follo...

Q: Decision to Discontinue a Product

A: A)   Differential analysis Cont. (Alt.1) or discontinue (Alt 2) Children's shoes Novembe...

Q: Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20...

A: Desired ending inventory = Net month's sale x 20%                                           = 500*20...

Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned Operating...

A: We are authorized to answer three sub parts at a time, since you have not mentioned which part you a...

Q: Question A and B pleas A business issued a 90day,8% note for 67000$ to creditor on account. Illustra...

A: a) When the Note payable is issued to creditor for the amount payable to him, the balance in the cre...

Q: Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following consideration:Cash $20,...

A: Given information is: Tea Tree Bay Ltd acquires a Gizmo Machine from Jetsons Ltd for the following c...

Q: Having issue with this problem. Thank you

A: Number of Outstanding stock = Number of Stocks Issued - Treasury Stock    Treasury stock is the stoc...

Q: Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company.   Can y...

A: Cash payback period is expected time required to recover the initial investment on a project or inve...

Q: Which of the following expenses would not appear in the cash budget? a. Depreciation expense b. Mark...

A: Cash Budget: In cash Budget it records only cash receipts and cash payments in an particular account...

Q: Use the following information for Short Exercises S21-2 and S21-3. Martin Company had the folowing c...

A: Unit product cost using variable costing = Direct material + Direct labor + Variable manufacturing o...

Q: The budgeted income statement is part of which element of the master budget? The financial budget T...

A: Master Budget: Master budget is the comprehensive set of budgeted financial statements and supportin...

Q: Define ‘control’ and state what would be the acceptable indicators for the transfer of control from ...

A: Control of an asset is defined as the ability to direct the use of and obtain substantially all of t...

Q: On December 31, 2003, Masters Inc. had outstanding 180,000 shares of common stock. Net income for 20...

A: Introduction Earnings Per Share and Diluted Earnings Per Share are the Profitability Measures and th...

Q: RCK Ltd issues a prospectus inviting the public to subscribe for 90 million ordinary shares of $2.00...

A: Calculate the pro-rata allotment ratio as follows: This means 5 shares are allotted for every 6 app...

Q: The following data refer to Nani’s Fashions for the current year: Sales Revenues $475 000 Work ...

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any s...

Q: Classique Household Furnishings & Appliances is a family-owned furniture store. You are the mana...

A: Cash Budget A cash budget is a budget prepared by the company which shows the net cash of the compan...

Q: AL ZAIN ltd uses a periodic inventory system. Its records show the following for the month of May, i...

A: Cost of goods sold is calculated by adding purchases to the beginning inventory and deducting the en...

Q: The controller of Sonoma Housewares Inc. instructs you to prepare a manthly cash budget for the next...

A: Calculate the amount received from accounts receivables as follows: In May: The amount received fro...

Q: The primary difference between variable costing and absorption costing is a. in variable costing, fi...

A:  

Q: 9. Ryker Company produces a product that requires 2 standard gallons per unit. The standard price is...

A: Direct Material price variance = (Standard price per gallons - actual price per gallons )*actual qua...

Q: Explain why the debit and credit total of a trial balance should always be equal? What are the situa...

A: In a trial balance, all debits total should always be equal to all credits total. Because as per dou...

Q: Little Book LTD has total assets of $860,000. There are 75,000 shares of stock outstanding, total bo...

A:  

Q: Information technology has made it easier for managers to perform all of the following tasks except ...

A: Budgetary slack refers to conscious estimation of budgeted revenue by under valuation or over valuat...

Q: On January 1, 2020, the JOSEPH Company budget committee has reached agreement on materials budgets b...

A: a)   JOSEPH COMPANY Production Budget For the six months ending June 30 ,2020 Partic...

Q: Of the three approaches to calculate sales required to achieve the breakeven point, which one(s) cal...

A:  

Q: 2) Explain the income & expenditure and Receipts & payment? Draw the format with example? Wh...

A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting ...

Q: What is the formula used to determine the number of units to be produced?

A: Number of units to be produced is calculated by Desired ending Inventory is to be added to the Plann...

Q: Rocky Mountain Waterpark sells half of its tickets for the regular price of $75. The other half go t...

A: Given information is: Rocky Mountain Waterpark sells half of its tickets for the regular price of $7...

Q: On 1 July 2015, Tiger Ltd leased a PET Injection machine from Ibri City Ltd. The machine cost Ibri C...

A: Lease: The term lease refers to an agreement where the owner of an asset gives the user an asset to ...

Q: b) What do you mean by dividend? Explain c) How was it possible to distribute dividends in the prese...

A: Shareholders  of a company expects return on investment made by them . companies pay a  portion of i...

Q: KMC Manufacturing Company makes garden and lawn equipment. The company operates through three divisi...

A:   Formulas Used 1. Contribution Margin = Sales - Total Variable Cost 2. Controllable Margin = Contri...