For Each of the Following Situations, Select the Best Answer

question 30

Essay

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.
___ 1. Factors used to identify segments.
___ 2. Revenues from external customers.
___ 3. Types of products and services from which each segment derives its revenues.
___ 4. Names of major customers.
___ 5. Revenues from transactions with other segments.
___ 6. Interest revenue.
___ 7. Long-lived assets.
___ 8. Discontinued operations and extraordinary items, when applicable.
___ 9. Income tax expense or benefit.
___ 10. Revenues for the domestic country.
___ 11. Cash flow information

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Definitions:

Managers

Managers are individuals in an organization responsible for directing and overseeing the work of a group of people towards the achievement of goals.

Residual Income

The income that exceeds the minimum rate of return, often used as a measure of the performance of investment centers within organizations.

Net Operating Income

Profit generated from a company's normal business operations, excluding deductions of interest and taxes.

Minimum Rate Of Return

The least expected rate of return on an investment necessary for it to be considered a viable option.