Question 1

The following information for Urbanski Corporation relates to the three months ending June 30, 2021:  Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit.Prepare the journal entries to reflect the sales and cost of goods sold, assuming Urbanski does not expect to replace the liquidated inventory at year-end.

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Question 2

Why are publicly traded companies in the U.S. required to publish quarterly financial statements?

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Question 3

According to U.S. GAAP, what general information about an operating segment must be disclosed?

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Question 4

Describe the test to determine whether a sufficient number of operating segments are disclosed.

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Question 5

Which items of information are required to be included in interim reports for each operating segment?

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Question 6

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

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Question 7

How does a company measure income tax expense to be reported in an interim period?

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Question 8

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

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Question 9

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

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Question 10

What related items need to be disclosed in regard to total segment assets?

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Question 11

Harrison Company, Inc. began operations on January 1, 2020, and applied the LIFO method for inventory valuation. On June 10, 2021, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:  The LIFO method was applied during the first quarter of 2021 and the FIFO method was applied during the second quarter of 2021 in computing income, above. Harrison's effective income tax rate is 40%. Harrison has 500,000 shares of common stock outstanding at all times.Compute the after-tax effect of Harrison's change in inventory method.

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Question 12

What is the purpose of the U.S. GAAP seventy-five percent requirement for industry segment disclosure?

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Question 13

The following information for Urbanski Corporation relates to the three months ending June 30, 2021:  Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit.Compute cost of goods sold and gross profit for the quarter ending June 30, 2021.

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Question 14

Harrison Company, Inc. began operations on January 1, 2020, and applied the LIFO method for inventory valuation. On June 10, 2021, Harrison adopted the FIFO method of accounting for inventory. Additional information is as follows:  The LIFO method was applied during the first quarter of 2021 and the FIFO method was applied during the second quarter of 2021 in computing income, above. Harrison's effective income tax rate is 40%. Harrison has 500,000 shares of common stock outstanding at all times.Prepare a schedule showing the calculation of net income and earnings per share to be reported by Harrison for the three-month period and the six-month period ended June 30, 2020 and 2021.

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Question 15

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

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Question 16

According to U.S. GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

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Question 17

What is meant by the term: disaggregated financial information?

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Question 18

For each of the following situations, select the best answer concerning segment disclosures of reportable segments.
A) Required to be disclosed by an operating segment, but not a geographical segment.
B) Required to be disclosed by a geographical segment, but not an operating segment.
C) Required to be disclosed by both an operating segment and a geographical segment.
D) Not required to be disclosed by either an operating segment or a geographical segment.Factors used to identify segments.Revenues from external customers.Types of products and services from which each segment derives its revenues.Names of major customers.Revenues from transactions with other segments.Interest revenue.Long-lived assets.Discontinued operations, when applicable.Income tax expense or benefit.Revenues for the domestic country.Cash flow information

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Question 19

What approach is used, according to U.S. GAAP, for determining how a business is divided into segments?

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Question 20

The following information for Urbanski Corporation relates to the three months ending June 30, 2021:  Urbanski uses the LIFO method to account for inventory, and expects at least 15,000 units to be on hand in the ending inventory at year-end. Purchases made in the last six months are expected to cost an average of $18 per unit.Prepare the journal entries to reflect the sales and cost of goods sold, assuming Urbanski expects to maintain 11,000 units in inventory at year-end.

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Quiz 8: Segment and Interim Reporting

Why are publicly traded companies in the U.S. required to publish quarterly financial statements?

According to U.S. GAAP, what general information about an operating segment must be disclosed?

Describe the test to determine whether a sufficient number of operating segments are disclosed.

Which items of information are required to be included in interim reports for each operating segment?

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

How does a company measure income tax expense to be reported in an interim period?

According to U.S. GAAP, what revenues and expenses included in segment profit or loss need to be disclosed?

Which two items of information must be reported for: (1) the domestic country; (2) all foreign countries in which the enterprise derives revenues or holds assets; and (3) each foreign country in which a material amount of revenues is earned?

What related items need to be disclosed in regard to total segment assets?

What is the purpose of the U.S. GAAP seventy-five percent requirement for industry segment disclosure?

List the five aggregation criteria that need to be considered by management in determining whether business activities and environments are similar.

According to U.S. GAAP, how should general corporate costs be allocated to individual segments to determine segment profit or loss?

What is meant by the term: disaggregated financial information?

What approach is used, according to U.S. GAAP, for determining how a business is divided into segments?