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1
Kaycee Corporation's revenues for the year ended December 31, 2004, were as follows:
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Kaycee has a reportable segment if that segment's revenues exceed:
A)$ 9,000
B)$12,000
C)$60,000
D)$72,000
E)$63,000
2
Assuming that each of the items below is significant (constitutes more than ten percent of the appropriate total), a company would not have to disclose under ASC Topic 280:
A)types of products and services from which each operating segment derives its revenues
B)factors used to identify operating segments
C)revenues from external customers
D)income tax expense or benefit
E)the identity of a major customer who accounts for thirty percent of all sales
3
ASC Topic 280 requires a company to disclose the following information for each reportable operating segment, except for:
A)revenues
B)gross profit
C)total segment assets
D)expenditures for additions to long-lived assets
E)income tax expense or benefit
4
All of the following items of information are required to be included in interim reports for each operating segment, except for:
A)revenues from external customers
B)intersegment revenues
C)revenues from internal customers
D)segment profit or loss
E)total assets, if there has been a material change from the last annual report
5
Which one of the following is a test for identifying operating segments for which separate disclosure is required?
A)asset test
B)liability test
C)expense test
D)gross profit test
E)equity test
6
Reed Inc. has three operating segments with the following information:
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Using the revenue test, what is the minimum amount of revenue that a segment must have and still be considered significant?
A)$ 955,000
B)$1,142,500
C)$1,065,000
D)$1,155,300
E)$3,650,000
7
Using the information in #6 above, which segments are reportable using the revenue test?
A)Boats and Publishing
B)Boats and Aircraft
C)Aircraft and Publishing
D)Aircraft only
E)Boats, Aircraft, and Publishing
8
Ashley Inc. has a publishing industry operating segment. Which one of the following is included in calculating the segment's operating profit or loss?
A)intersegment revenues
B)interest expense
C)extraordinary losses
D)income taxes
E)pension expense
9
Item is based on the following information:

Masten Inc. has four identifiable industry segments:
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What is the minimum operating profit or loss that a segment must have in order to be considered significant?
A)$2,850
B)$3,450
C)$4,000
D)$4,500
E)$5,000
10
Item is based on the following information:

Masten Inc. has four identifiable industry segments:
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What is the minimum amount of revenue that each of the segments must have in order to be considered separately reportable?
A)$1,900
B)$6,000
C)$7,200
D)$8,100
E)$10,000
11
Item is based on the following information:

Masten Inc. has four identifiable industry segments:
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What amount of revenues must be generated from one customer before that party must be identified as a major customer?
A)$1,900
B)$6,000
C)$7,200
D)$8,100
E)$10,000
12
ASC Topic 280 requires a company to disclose the following information for each reportable industry segment, except for:
A)identifiable liabilities
B)revenues
C)operating profit or loss
D)capital expenditures
E)equity in net income from an investment in the net assets of equity investees
13
Under ASC Topic 280, an operating segment would not be required to disclose the following information even if it were material in amount:
A)revenues from transactions with other operating segments
B)investment in equity method affiliates
C)net income from discontinued operations
D)cash flow information
E)amount of revenues from a major customer
14
ASC Topic 280 requires management to consider the following aggregation criteria except for:
A)the type or class of customer
B)the nature of the production process
C)the distribution methods
D)the total amount of long-lived assets for each operating segment
E)the nature of the products and services provided by each operating segment
15
Advantages of segment reporting that aligns with a company's internal structure include all of the following, except for:
A)A company's internal segments are probably less subjective than industry-based segments.
B)The incremental cost should be minimal.
C)An easy application of GAAP to internal segments would exist, that would not have bee possible if the segments were not aggregated.
D)Analysts' predictions of management actions that affect cash flows should improve.
E)Internal segments reflect risks and opportunities that management believes are important.







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