ADVANCED ACCOUNTING W/ACCESS >CUSTOM<
14th Edition
ISBN: 9781307594683
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 8, Problem 23P
To determine
Identify the statement which is not true with respect to the profit or loss test.
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23. Howard Corporation has six different operating segments reporting the following operating profit and loss figures:
A $ 80,000 profit D $440,000 loss
B 140,000 loss E 50,000 profit
C 100,000 profit F 170,000 profit
With respect to the profit or loss test, which of the following statements is not true?
a. A is a reportable segment based on this one test.
b. C is not a reportable segment based on this one test.
c. E is not a reportable segment based on this one test.
d.F is a reportable segment based on this one test.
B Incorporated provided the following data with respect to their segments:
Segment
Revenues
Profit/Loss
Identifiable Assets
A
40 million
3 million
80 million
B
20 million
4 million
70 million
C
15 million
(5 million)
60 million
D
50 million
(1 million)
100 million
E
5 million
(300,000)
30 million
F
8 million
(1.3 million)
20 million
Total
138 million
(600,000)
360 million
Using the profit/loss test, what is the minimum amount of profit/loss for a segment to be considered as reportable:
a.
700,000
b.
60,000
c.
600,000
d.
820,000
e.
Answer not among the
Pina Company is involved in four separate industries. The following information is available for each of the four industries.
Operating Segment
W
a.
X
Y
Z
Total Revenue
Revenue test.
$57,246
9,860
24,675
6,919
$98,700
Operating Profit (Loss)
$16,970
2,570
(3,260)
Determine which of the operating segments are reportable based on the:
W&X
Reportable Segments
1,220
$17,500
Identifiable Assets
$165,764
82,882
20,006
17,148
$285,800
Chapter 8 Solutions
ADVANCED ACCOUNTING W/ACCESS >CUSTOM<
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...
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- Presented below are four segments that have been identified by XYZ, Inc. TE Segments Total revenue Profit (Loss) Identifiable Assets A 1,800,000 200,000 (350,000) 20,000 30,000 6,000,000 6,000,000 1,500,000 3,000,000 B 4,000,000 600,000 C D 1,300,000 Identify the reportable segments under the quantitative thresholds of PFRS 8.arrow_forwardWhich of the following is NOT a reportable segment criteria. Question Answer a. Its assets are 10% of mare of the combined assets of all operating segments b Its reported revenue, from internal and extemal customers, is 10% or more of the combined revenuec. All of the above d. Its reported profit or loss is 15% or more of the greater of (1) the combined profit of all operating segments that did not report a loss; and (1) the combined reported loss of all operating segments that reported a loss: ofarrow_forward5. What is the total revenue of the reportable segments after considering the quantitative thresholds but without regard to aggregation criteria? * 5. Bilo-Bilo Company provided the following data for the current year: Segment Profit (Loss) 215,000 25,000 Revenue Assets 450,000 80,000 A 600,000 80,000 360,000 190,000 190,000 80,000 50,000 (35,000) (20,000) 10,000 (20,000) (25,000) 250,000 140,000 160,000 140,000 140,000 140,000 E F G 120,000 380,000 Others a. The "others" category included five operating segments, none of which has revenue or assets greater than P50,000 and none with an operating profit. b. Operating segments B and C produce very similar products and use very similar production processes, but serve different customer types and use quite different product distribution system. Segment B operates in a regulated environment while Segment C does not. c. Operating segments F and G have very similar products, production processes, product distribution systems, but they serve…arrow_forward
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