Q1: Choose the right answer : 1-Which of the following statements about users of accounting information is incorrect ? a-taxing authorities are external users b-present creditors are external users c-regulatory authorities are internal users . 2-Which of the following is a criterion for determining whether an operating segment is separately reportable ? a-segment liabilities are 10 percent or more of consolidated liabilities . b-segment profit or loss is 10 percent or more of consolidated net income c-segment assets are 10 percent or more of combined segment assets . 3-When an investor uses the equity method to account for investments in common stock , cash dividends received by the investor from the investee should be recorded as a- a deduction from the investor's share of the investee's profit b- dividend income c-a deduction from the investment account . 4-Which of the following does not represent a primary motivation for business combinations ? a-cost savings through elimination of duplicate facilities and staff . b-quick entry for new and existing products into markets . c-larger firms being less likely to fail . 5-Goodwill recognized in a business combination must be allocated among a firm's identified reporting units . If the fair value of a particular reporting unit with recognized goodwill falls below its carrying amount , which of the following is true ? a-no goodwill impairment loss is recognized unless the implied value for goodwill exceeds its carrying amount . b-a goodwill impairment loss is recognized if the carrying amount for goodwill exceeds its implied value . c-a goodwill impairment loss is recognized for the difference between the reporting unit's fair value and carrying amount . 6- Which of the following is the appropriate basis for valuing fixed assets acquired in a business combination accounted for as a purchase carried out by exchanging cash for common stock ? a-historic cost b-book value c-fair value