Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22. Provided below are four segments that have been identified by a company. SEGMENTS IDENTIFIED BY A COMPANY Total Revenue Segment(Unaffiliated) Profit (Loss) OperatingIdentifiable Assets

image text in transcribed
image text in transcribed
22. Provided below are four segments that have been identified by a company. SEGMENTS IDENTIFIED BY A COMPANY Total Revenue Segment(Unaffiliated) Profit (Loss) OperatingIdentifiable Assets S 200,000 S 400,000 150,000 60,000 25,000 S 700,000 600,000 300,000 150,000 35,000) 4,000 3,000 Under current FASB Standards, for which of the segments would the company need to provide segment information? (a) Wand X. (b) X and Y (c) W, X, and Y (d) W, X, Y, and Z. 23. A company sold equipment that had an original cost of $100,000 and accumulated depreciation of S62,000. The proceeds from the sale were $45,000. How should this transaction appear on the company's statement of cash flows, using the indirect method? (a) An addition to net income of $7,000 and a cash inflow from investing activities of $45,000. A deduction from net income of $7,000 and a cash inflow from investing activities of $45,000. (b) (c) A cash inflow from investing activities of $45,000 only (d) A deduction from net income of $7,000 and a cash inflow from investing activities of $38,000. Use the following information to answer Questions 24 and 25. A company's December 31 financial statements for 20X0 and 20X1 contained the following errors. COMPANY INFORMATION REGARDING ERRORS IN FINANCIAL STATEMENTS FOR YEARS ENDING DECEMBER 31, 20X0 AND 20x1 Dec. 31, 20X0 $ 5,000 understated S 3,600 overstated $2,500 overstated Dec. 31, 20X1 Ending Inventory Depreciation Expense What is the total net effect of these errors on the company's 20X0 net income, ignoring income tax considerations? (a) Understated by $5,000. (b) Understated by $7,500. (c) Understated by $2,500. (d) Overstated by $2,500. 24. What is the total net effect of these errors on the company's 20X1 retained earnings, ignoring income tax considerations? (a) Understated by $11,100. (b) Overstated by $3,600. (c) Overstated by $1,100. (d) Understated by $3,900. 25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch

6th Edition

0132366355, 978-0132366359

More Books

Students also viewed these Accounting questions

Question

=+c. Find or create a visual.

Answered: 1 week ago