23- Multiple Choice - C H AP T E R 2 3 O T H E R M E AS U R...

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CHAPTER 23 - OTHER MEASUREMENT AND DISCLOSURE ISSUES MULTIPLE CHOICE 1. Which of the following items found in an annual report is not subject to GAAP? a. Financial statements. b. Management discussion and analysis. c. Inventory methods. d. Accounting policies. 2. Reasons for increasing disclosure requirements do not include a. The necessity for timely information. b. The complexity of the business environment. c. Accounting as a control and monitoring device. d. The current government trend toward reducing income taxes. 3. Which of the following does not need be disclosed in a Summary of Significant Accounting Policies? a. Treatment of development and marketing costs. b. Revenue recognition method(s). c. Claims of shareholders. d. Depreciation and amortization method(s). 4. Errors and irregularities are defined as intentional distortions of facts. True or false? Errors Irregularities a. Yes Yes b. Yes No c. No Yes d. No No 5. According to IFRS, an operating segment is a reportable segment if a. its operating profit is 10% or more of the combined operating profit of profitable segments only. b. its operating loss is 10% or more of the combined operating losses of segments that incurred an operating loss. c. the absolute amount of its operating profit or loss is 10% or more of the greater, in absolute amount, of (a) the combined reported operating profit of all operating segments that incurred a loss, of (b) the combined reported profit of all operating segments that did report a profit. d. the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of (a) the combined reported operating profit of all operating segments that did not incur a loss, or (b) the combined reported loss of all operating segments that did report a loss.
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23- 2 6. According to IFRS, a segment of a business is to be reported separately when its reporting revenue (including both sales to external customers and intersegment sales or transfers) exceeds 10% of the a. total domestic sales only. . b. combined revenues of all the enterprise's operating segments. c. combined revenues of all the enterprise’s profitable operating segments. d. combined net income of all the enterprise’s profitable operating segments. 7. IFRS requires that all of the following information about each reportable segment must be provided except a. total liabilities. b. interest revenue. c. cost of goods sold. d. income tax expense or benefit. 8. Although ASPE does not offer guidance for reporting segmented information, IFRS requires that a. financial statements include selected information on a single basis of segmentation. b. financial statements include selected information on multiple bases of segmentation. c.
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23- Multiple Choice - C H AP T E R 2 3 O T H E R M E AS U R...

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