Which of the following types of entities are required to report on business segments?
Answer(s): A
Choice "b" is correct. Only publicly-traded enterprises are required to report on business segments. Choices "a", "c", and "d" are incorrect, per the above.
In financial reporting of segment data, which of the following must be considered in determining if an industry segment is a reportable segment?
Choice "a" is correct. A segment is considered reportable if its reported revenue, including sales to unaffiliated customers and intersegment sales, is 10% or more of the combined revenue (unaffiliated and intersegment) of all operating segments.Choices "b", "c", and "d" are incorrect, per the above .Development-Stage Enterprises
A development stage enterprise should use the same generally accepted accounting principles that apply to established operating enterprises for:
Choice "a" is correct. Development stage enterprises must use all the same principles as established enterprises including those of revenue recognition and deferral of expenses. The primary difference is that development stage enterprises must provide additional disclosures not required of established operating enterprises. SFAS #7, para. 10
Tanker Oil Co., a development stage enterprise, incurred the following costs during its first year of operations:Tanker had no revenue during its first year of operation. What amount may Tanker capitalize as organizational costs?
Answer(s): D
Choice "d" is correct. $0.All organizational costs (start-up costs) should be expensed when incurred (per SOP 98-5).Fair Value Measurements
Post your Comments and Discuss AICPA CPA-Financial exam with other Community members:
Venkatesh Aiyar commented on September 23, 2024 I will be taking this exam in early December. If anyone has taken or passed this exam recently, please let me know what I should focus on other than the usual suspects such as consolidation, cash flow etc. UNITED STATES upvote
Our website is free, but we have to fight against bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the CPA-Financial content, but please register or login to continue.