Chapter 20 - Operating Segments: QUESTION 20-15 Multiple Choice (PFRS 8)

TFA 1
Chapter 20 – Operating Segments

Amiel Christian F. Mendoza
QUESTION 20-15 Multiple choice (PFRS 8)
1. Segment reporting shall apply to

a. Separate financial statements of an entity only.
b. Consolidated financial statements of a group only.
c. Both the separate financial statements of an entity and the consolidated
financial statements of a group.
d. Neither the separate financial statements of an entity nor the consolidated financial
statements of a group.
2. If a financial report contains both the consolidated financial statements of a parent and
the parent’s separate financial statements, segment information is required in
a. The separate financial statements only.
b. The consolidated financial statements only.
c. Both the separate and consolidated financial statements.
d. Neither the separate nor the consolidated financial statements.
3. An operating segment is a component of an entity

a. That engages in business activities from which it may earn revenue and incur
expenses.
b. Whose operating results are regularly reviewed by the entity's chief operating
decision maker.
c. For which discrete information is available.
d. All of these characterize an operating segment.
4. Which quantitative threshold is not a requirement in qualifying a reportable segment?

a. The segment revenue, both external and internal, is 10% or more of the combined
external and internal revenue of all operating segments.
b. The segment profit or loss is 10% or more of the greater between the combined profit
of profitable segments and combined loss of unprofitable segments.
c. The segment assets are 10% or more of the combined assets of all operating
segments.
d. The segment assets are 20% or more of the combined assets of all operating
segments.
5. Which statement is true concerning the 75% overall size test for reportable segments?
a. The total external and internal revenue of all reportable segments is 75% or more of
the entity’s external revenue.
b. The total external revenue of all reportable segments is 75% or more of the entity’s
external and internal revenue.
c. The total external revenue of all reportable segments is 75% or more of the
entity’s external revenue.
d. The total internal revenue of all reportable segments is 75% or more of the entity’s
internal revenue.
6. The term chief operating decision maker

a. Refers to a manager with a specific title.
b. Must be disclosed by title in the financial reporting for segments.
c. Must be described in the disclosures for the financial reporting for segments.
d. Refers to a function of allocating resources to the operating segments and
assessing their performance.
7. Which statement is not true with respect to a chief operating decision maker?
a. The term chief operating decision maker identifies a function and not necessarily a
manager with a specific title.
b. In some cases, the chief operating decision maker could be the chief operating
officer.
c. The board of directors acting collectively could qualify as the chief operating
decision maker.
d. The chief internal auditor would generally qualify as chief operating decision
maker.
8. In financial reporting for operating segments, an entity shall disclose all of the following,
except
a. Type of product and service from which each reportable segment derives revenue.
b. The title of the chief operating decision maker.
c. Factors used to identify the reportable segments.
d. The basis of measurement of segment profit or loss and segment assets.
9. Two or more operating segments may be aggregated into a single operating segment if all
of the following conditions are satisfied, except
a. The segments have similar characteristics.
b. The segments share a majority of the nature of product or service, nature of
production process, class of customer, method of product distribution and regulatory
environment.
c. The aggregation is consistent with the core principle of segment reporting.
d. The segments have dissimilar characteristics.
10. Operating segments that do not meet any of the quantitative thresholds
a. Cannot be considered reportable.
b. May be considered reportable and separately disclosed if management believes
that information about the segment would be useful to the users of the financial
statements.
c. May be considered reportable and separately disclosed if the information is for
internal use.
d. May be considered reportable and separately disclosed if this is the practice within
the economic environment in which the entity operates.

Chapter 20 - Operating Segments: QUESTION 20-15 Multiple Choice (PFRS 8)

Uploaded by

Copyright:

Available Formats

Chapter 20 - Operating Segments: QUESTION 20-15 Multiple Choice (PFRS 8)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 20 - Operating Segments: QUESTION 20-15 Multiple Choice (PFRS 8)

Uploaded by

Copyright:

Available Formats

TFA 1

Chapter 20 – Operating Segments

QUESTION 20-15 Multiple choice (PFRS 8)

1. Segment reporting shall apply to

3. An operating segment is a component of an entity

4. Which quantitative threshold is not a requirement in qualifying a reportable segment?

6. The term chief operating decision maker

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.