Question 1 (1 point)A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the __________.

a

total combined revenues of all segments reporting profits

b

total revenues of all the enterprise's industry segments

c

total export and foreign sales

d

combined net income of all segments reporting profits

Question 2 (1 point)If a business entity entered into certain related party transactions, it would be required to disclose all of the following information except the __________.

a

nature of the relationship between the parties to the transactions

b

nature of any future transactions planned between the parties and the terms involved

c

dollar amount of the transactions for each of the periods for which an income statement is presented

d

amounts due from or to related parties as of the date of each balance sheet presented

Question 3 (1 point)Unruh Corp. and its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2018.

Assets

Industry Revenue Profit 12/31/18

A $ 8,000,000 $1,320,000 $16,000,000

B 6,400,000 1,120,000 14,000,000

C 4,800,000 960,000 10,000,000

D 2,400,000 440,000 5,200,000

E 3,400,000 540,000 5,600,000

F 1,200,000 180,000 2,400,000

$26,200,000 $4,560,000 $53,200,000

In its segment information for 2018, how many reportable segments does Unruh have?

a

three

b

four

c

five

d

six

Question 4 (1 point)Events that occur after the December 31, 2015, balance sheet date (but before the balance sheet is issued) and which provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be __________.

a

discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report.

b

disclosed only in the Notes to the Financial Statements.

c

used to record an adjustment to Bad Debt Expense for the year ending December 31, 2015

d

used to record an adjustment directly to the Retained Earnings account

Question 5 (1 point)In January 2018, Post, Inc., estimated that its year-end bonus to executives would be $960,000 for 2018. The actual amount paid for the year-end bonus for 2017 was $880,000. The estimate for 2018 is subject to year-end adjustment. What amount, if any, of expense should be reflected in Post's quarterly income statement for the three months ended March 31, 2018?

a

$-0-

b

$220,000

c

$240,000

d

$960,000

Question 6 (1 point)In presenting segment information, which of the following items must be reconciled to the entity's consolidated financial statements?

a

Revenues (Yes); Operating Profit [Loss] (Yes); Identifiable asserts (Yes)

b

Revenues (No); Operating Profit [Loss] (Yes); Identifiable asserts (Yes)

c

Revenues (Yes); Operating Profit [Loss] (No); Identifiable asserts (Yes)

d

Revenues (Yes); Operating Profit [Loss] (Yes); Identifiable asserts (No)

Question 7 (1 point)Fina Corp. had the following transactions during the quarter ended March 31, 2018:

Loss from hurricane damage $350,000

Payment of fire insurance premium for calendar year 2018 600,000

What values for Extraordinary Loss and Insurance Expense should be included in Fina's income statement for the quarter ended March 31, 2018?

a

$350,000, $600,000

b

$350,000, $150,000

c

$87,500, $150,000

d

$0, $600,000

Question 8 (1 point)All of the following information about each operating segment must be reported except __________.

a

unusual items

b

interest revenue

c

cost of goods sold

d

depreciation and amortization expense

Question 9 (1 point)The following data are provided:

December 31

2018 2017

Cash $ 750,000 $ 500,000

Accounts receivable (net) 800,000 600,000

Inventories 1,300,000 1,100,000

Plant assets (net) 4,000,000 3,250,000

Accounts payable 550,000 400,000

Income Taxes payable 100,000 50,000

Bonds payable 700,000 700,000

10% Preferred stock, $50 par 1,000,000 1,000,000

Common stock, $10 par 1,200,000 900,000

Paid-in capital in excess of par 800,000 650,000

Retained earnings 2,000,000 1,750,000

Net credit sales 6,400,000

Cost of goods sold 4,200,000

Operating expenses 1,450,000

Net income 750,000

Additional information:

Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2018, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2018.

At December 31, 2018, the acid-test ratio was _____.

a

1,550 650

b

1,550 1,080

c

2,100 800

d

2,850 650

Question 10 (1 point)The following data are provided:

December 31

2018 2017

Cash $ 750,000 $ 500,000

Accounts receivable (net) 800,000 600,000

Inventories 1,300,000 1,100,000

Plant assets (net) 4,000,000 3,250,000

Accounts payable 550,000 400,000

Income Taxes payable 100,000 50,000

Bonds payable 700,000 700,000

10% Preferred stock, $50 par 1,000,000 1,000,000

Common stock, $10 par 1,200,000 900,000

Paid-in capital in excess of par 800,000 650,000

Retained earnings 2,000,000 1,750,000

Net credit sales 6,400,000

Cost of goods sold 4,200,000

Operating expenses 1,450,000

Net income 750,000

Additional information:

Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2018, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2018.

The inventory turnover for 2018 is _____.

a

6,400 1,300

b

4,200 1,300

c

6,400 1,200

d

4,200 1,200