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Question;17. Five of eight internally reported operating;segments of Rollins Company qualify under the standards set by FASB 131 for;segment reporting. However, the five identified segments do not meet the 75;percent revenue test. FASB 131 prescribes that management;A. subdivide segments until there are at least 10 reportable segments.;B. consolidate the remaining operating segments and include them under an;all other" category.;C. select additional operating segments until the 75% threshold is met.;D. include the heading "corporate headquarters" as an operating;segment.;18. Derby Company pays its executives a bonus of 6;percent of income before deducting the bonus and income taxes. For the quarter;ended March 31, 2008, Derby had income before the bonus and income tax of;$12,000,000. For the year ended December 31, 2008, Derby estimates that its;income before bonus and income taxes will be $70,000,000. For the quarter ended;March 31, 2008, what is the amount of the bonus that Derby should deduct on its;income statement?;A. $4,200,000;B. $720,000;C. $1,050,000;D. $180,000;19. In 2006 and 2007, each of Putney Company's four;operating segments met one of the three quantitative tests for segment;reporting. In 2008, Segment B failed to qualify under the prescribed tests;because of abnormal financial conditions. The other three segments qualified;for reporting. For 2008, Segment B;A. should be excluded from segment disclosure but referred to in the;management letter to shareholders.;B. should be distinctly separated from the other three segments and listed;as a "nonqualifying" segment.;C. should be combined with one of the other three segments and reported.;D. should be included in the segment disclosures at the discretion of;management.;20. Collins Company reported consolidated revenue of;$120,000,000 in 2008. Collins operates in two geographic areas, domestic and;Asia. The following information pertains to these two areas;What calculation below is correct to determine if the revenue test is satisfied;for the Asian operations?;A. $58,000,000/$140,000,000;B. $50,000,000/$120,000,000;C. $58,000,000/$120,000,000;D. $50,000,000/$140,000,000;21. Refer to the above information. Which of the;operating segments above meet the revenue test?;A. B, D, and E;B. A and D;C. A, B, and D;D. B, C, D, and E;22. Refer to the above information. Which of the;operating segments above meet the operating profit (loss) test?;A. B and E;B. A and B;C. A, B, and E;D. A, B, C, and E;23. Refer to the above information. Which of the;operating segments above are reportable segments?;A. B, C, and D;B. A, B, D, and E;C. B, D, and E;D. A, B, C, D, and E

 

Paper#44958 | Written in 18-Jul-2015

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