FINAC08

Reportable Segment Revenue Test

1) Mia Company provided the following information related to operating segments:

Segment Sales to customers Intersegment sales Total revenue

One 5,000,000 3,000,000 8,000,000

Two 8,000,000 4,000,000 12,000,000

Three 4,000,000 -- 4,000,000

Four 43,000,000 16,000,000 59,000,000

Combined 60,000,000 23,000,000 83,000,000

Elimination -- (23,000,000) (23,000,000)

Consolidated 60,000,000 -- 60,000,000

What is the total revenue that should be disclosed for the reportable segments?

A. 71,000,000

B. 51,000,000

C. 79,000,000

D. 56,000,000

Reportable Segment Operating Profit or Loss Test

2) Starboy Corporation and its divisions are engaged solely in manufacturing. The following data pertain to the industries

in which operations were conducted for the current year:

Operating profit or loss

Segment A 10,000,000 Profit

Segment B 2,000,000 Profit

Segment C 11,000,000 Loss

Segment D 3,000,000 Profit

Segment E 12,000,000 Loss

In its segment information for the current year, which is (are) not a reportable segment(s)?

A. Segment A, B, D

B. Segments B, D

C. Segment B

D. None of them

Reportable Segment Asset Test

3) Dart Company and its divisions are engaged solely in manufacturing operations. The following data pertains to the

industries in which operations were conducted for the year ended December 31, 2017.

Segments Total revenue Operating profit Identifiable assets

A 13,000,000 4,000,000 25,000,000

B 9,000,000 2,000,000 20,000,000

C 7,700,000 1,500,000 15,000,000

D 3,000,000 1,000,000 7,000,000

E 3,800,000 800,000 8,000,000

F 3,500,000 700,000 5,000,000

40,000,000 10,000,000 80,000,000

In its segment information for 2017, how many reportable operating segments does Dart have?

A. Three

B. Four

C. Five

D. Six

Reportable Segment 75% Threshold of All Reportable Segment

4) Master Roshi Company provided the following information pertaining to operating segments for the year ended

December 31, 2015:

Total revenue P 80,000,000

Sales to external customers included in total revenue 30,000,000

External revenue reported by reportable operating segments must be at least what amount?

A. 60,000,000

B. 37,500,000

C. 30,000,000

D. 22,500,000

Reportable Segment Additional Reportable Segment

5) Warrior Nun has no intersegment sales and has the following operating segments with their corresponding revenue:

Segment Revenue Percentage

AA 2,400,000 30%

BB 1,600,000 20%

CC 1,200,000 15%

DD 720,000 9%

EE 640,000 8%

FF 560,000 7%

GG 480,000 6%

HH 400,000 5%

8,000,000 100%

Assume that Segments GG and HH have similar products, similar production process, similar marking

methods and are not operating under regulated environment

Which of the above segments are considered reportable segments?

A. Segments AA, BB, CC, DD, EE, FF, GG, HH

B. Segments AA, BB, CC, GG, HH

C. Segments AA, BB, CC

D. Segments DD, EE, FF

Major Customer