Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 8, Problem 26P
To determine
Identify the true statement from the following
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Students have asked these similar questions
An entity and its divisions reported the following for the year 20xl:
Sales to unaffiliated customers
38,000,000
15,000,000
Intersegment sales of products similar to those sold to unaffiliated customers
Interest earned on loans to other operating segments
1,600,000
The entity and all of its divisions are engaged solely in manufacturing operations. To qualify as reportable
segment, the segment revenue should at least be what amount?
Chambers Company has seven operating segments but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,010,000 ($780,000 + $230,000) from sales to outside customers. In addition, the segments had $300,000 in intersegment sales ($250,000 + $50,000).Which of the following statements is true?a. A sufficient number of segments is being reported because those segments have $1,030,000 in total sales of a total of $1,310,000 for the company as a whole.b. Not enough segments are being reported because those segments have $780,000 in outside sales of a total of $1,010,000 for the company as a whole.c. Not enough segments are being reported because those segments have $1,030,000 in total revenues of a total of $1,310,000 for the company as a whole.d. A sufficient number of segments is being reported because those segments have $780,000 in outside sales of a total of $1,010,000 for the company as a whole.
Chigua Company has seven operating segments, but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,017,000 ($784,000+ $233,000) from sales to outside customers. In addition, the segments had $307,000 in
intersegment sales ($254,000+ $53,000).
Outside
Sales
201,000
161,000
151,000
Intersegment
Sales
$ 111,000
71,000
41,000
31,000
Accounts
One
$ 271,000
Two
Three
Four
Totals
$ 784,000
$ 254,000
Five
Six
$ 101,000
Seven
Totals
$ 233,000
$ 21,000
11,000
21,000
$ 53,000
Which of the following statements is true?
81,000
51,000
Multiple Choice
A sufficient number of segments is being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole.
A sufficient number of segments is being reported because those segments have $1,038,000 in total sales of a total of $1,324,000 for the company as a whole.
Not enough segments are being reported because…
Chapter 8 Solutions
Advanced Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...
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