Question 1

What information should a public company present about revenues from its reporting segments?

Options :

A : Disclose separately the amount of sales to unaffiliated customers and the amount of intracompany sales.

B : Disclose as a combined amount sales to unaffiliated customers and intracompany sales between geographic areas.

C : Disclose separately the amount of sales to unaffiliated customers but not the amount of intracompany sales between geographic areas.

D : No disclosure of revenues from foreign operations need be reported.

Answer: A

Question 2

What is the purpose of information presented in notes to the financial statements?

Options :

A : To provide disclosures required by generally accepted accounting principles.

B : To correct improper presentation in the financial statements.

C : To provide recognition of amounts not included in the totals of the financial statements.

D : To present management's responses to auditor comments.

Answer: A

Question 3

On March 15, 1992, Krol Co. paid property taxes of $90,000 on its office building for the calendar year 1992. On April 1, 1992, Krol paid $150,000 for unanticipated repairs to its office equipment. The repairs will benefit operations for the remainder of 1992. What is the total amount of these expenses that Krol should include in its quarterly income statement for the three months ended June 30, 1992?

Options :

A : $172,500

B : $97,500

C : $72,500

D : $37,500

Answer: C

Question 4

Which of the following is true regarding the presentation of "comprehensive income."

Options :

A : Option A

B : Option B

C : Option C

D : Option D

Answer: C

Question 5

Which of the following is not a valuation technique that can be used to measure the fair value of an asset or liability?

Options :

A : The market approach.

B : The impairment approach.

C : The income approach.

D : The cost approach.

Answer: B

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