Question
1)Operating profits and losses for the 4 industry segments of Brittle Company are as follows: Candy ($590,000) Stix $ 20,000 Chips $ 85,000 Gum $
1)Operating profits and losses for the 4 industry segments of Brittle Company are as follows:
Candy | ($590,000) |
Stix | $ 20,000 |
Chips | $ 85,000 |
Gum | $ 9,000 |
Brittle Company uses iGAAP for its external financial reporting. Using only the operating profits (loss) test, which of the segments are reportable?
a) Candy and Chips only. |
b) Stix, Chips, and Gum only. |
C) Candy only. |
d) Under iGAAP, all four segments must be reported. |
2)
Nicole, Inc. uses iGAAP for its external financial reporting. During 2009, an employee of the company was injured in the factory. Discussions with corporate attorneys resulted in a determination that the company would be required to pay between $1,000,000 and $2,000,000 to settle the injury claim. Nicole, Inc. accrued a contingent liability on December 31, 2009 for $1,000,000. On February 4, 2011, Nicole, Inc. settled the lawsuit for $2,200,000. What amount of loss should be reported on the income statement for the year ended December 31, 2010 for Nicole, Inc. related to this lawsuit?
a) $2,200,000 |
b) $1,000,000 |
c) $1,200,000 |
d) No extra loss will be recorded in 2010, the remaining loss will be recorded in 2011. |
3)
If Benjamin Company and Iris, Inc. are similar companies in every regard, except Benjamin Company uses iGAAP while Iris, Inc. uses U.S. GAAP, which of the following is true?
a) Iris, Inc. is required to issue interim statements every 6 months. |
b) Benjamin Company need not recognize post-balance sheet events. |
c) Benjamin Company is not required by iGAAP to issue interim statements |
d) All of the above are true. 4) iGAAP requires companies to disclose transactions with related parties, including the name of the related party and any doubtful amounts related to outstanding balances for the related party. a) True
|
Thank you for your help
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started