please i need help with all of these questions

The primary emphasis of interim reporting is on:

a.	interim cash flow
b.	the interim statement of financial position
c.	interim retained earnings
d.	interim income data

OBJ: 12-1

32. Which of the following best describes the proper accounting for interim financial reports?

a.	The interim period is viewed as an integral part of the annual accounting period.
b.	The interim period is viewed as a distinct, independent accounting period.
c.	Interim net income should be determined by using the same principles as those for the annual accounting period.
d.	Net income should be computed on the cash basis except for sales, cost of goods sold, and depreciation.

OBJ: 12-1

33. If a company is utilizing LIFO inventory costing, what might be the effect on the calculation of Cost of Goods sold in an interim financial statement?

a.	cost of goods sold is calculated on a historical cost basis only
b.	the interim cost of goods sold includes the replacement cost of temporarily liquidated inventory
c.	cost of goods sold is not adjusted for any changes due to liquidation of LIFO inventory
d.	any of the effects of liquidation are deferred until year end

OBJ: 12-2

34. In order to generate interim financial reports that contain a reasonable portion of annual expenses, which of the following statements is true?

a.	an allocation of a portion of an annual bonus would be made as an interim adjustment
b.	any adjustments for inventory shrinkage would be deferred to year end
c.	the allowance for uncollectible accounts receivable will be revised at year end
d.	None of the above are true

OBJ: 12-2

35. Which of the following statements is NOT true concerning the determination of the effective tax rate to be used for interim reporting?

a.	Tax rate changes should not be accounted for retroactively.
b.	The effective tax rate for the entire year should be estimated.
c.	The effective tax rate should reflect anticipated tax credits.
d.	The estimated tax rate should reflect extraordinary items.

ANS: D DIF: E OBJ: 12-3

36. Abitz Corporation has the following pretax operating income in its first three quarters of 20X5. The effective tax rate for each quarter is provided. Determine the third quarter income tax or benefit.

	Current	Effective
Quarter	Period	Tax Rate
First	$40,000	25%
Second	(25,000)	25%
Third	50,000	30%

a.	$3,750
b.	$15,000
c.	$15,750
d.	$20,000

OBJ: 12-3

37. Nonordinary items resulting in income or loss

a.	include unusual but not infrequent gains.
b.	are treated the same as ordinary items when calculating the effective tax rate.
c.	are always treated as a total group when calculating the effective rate for the quarter.
d.	are always excluded from interim reporting.

OBJ: 12-4

38. In determining if two operating segments may be combined into one, which of the following factors should be considered?

a.	similarities regarding profit margins
b.	whether the nature of the products and services is similar
c.	whether there is a similar amount of intracompany sales
d.	whether there is a similar number of employees

OBJ: 12-5

39. Which of the following is NOT considered when determining whether an operating segment qualifies as a reportable segment?

a.	revenue of the segment
b.	the assets of the segment
c.	the number of foreign offices
d.	the absolute amount of its profit or loss

OBJ: 12-6

40. Which of the following statements about required disclosures in segmental reporting is not true?

a.	No more than ten segments may be reported.
b.	The name of each major customer does not have to be disclosed.
c.	Even if there is only one reportable segment, the company must report revenues from external customers for each product or service or each group of related products or services.
d.	Segmental information must be included in interim reporting.

OBJ: 12-7