Scribd
Upload
64 views3 pages

Sasha AFA Assignment 2 MCQ

Uploaded by

Sasha Deonarine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
64 views3 pages

Sasha AFA Assignment 2 MCQ

Uploaded by

Sasha Deonarine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

1) Barb Corporation

Ratio of segment EF = Sales to Total Sales


= $750,000: $1,000,000
= 3:4
Operating Profit for 2020

Sales $750,000
Less: Direct Expenses (325,000)
3
Indirect Expenses ( × $ 120,000) (90,000) (415,000)
4
Total Operating Profit $335,000 ( B)

2) Dukko Company

Segment 3 Total

Sales $1,080,000 $1,800,000


Traceable Costs (600,000) (1,200,000)
Profit before common costs 480,000 600,000

480000
Common Costs ( × 350000) (280,000) (350,000)
600000
Segment Profit 200,000 250,000 (C)

3) Spein Company

Segment Y Total

Sales 300,000 900,000


Traceable Costs (240,000) (600,000)
Income before allocable costs 60,000 300,000

60000
Allocable Costs ( × $ 150,000 ) (30,000)
300000

Operating Profits 30,000


4) Selected data for a segment of a business enterprise are to be reported separately when
the revenue of the segment exceeds 10% of the ( C ) Total revenue of all enterprise
segments.
5) King Company

Segment 2

Sales 400,000
Traceable Costs (150,000)
Profit before common costs 250,000

400000
Common costs ( ×250,000 ) (200,000)
1000000
Segment Profit 50,000 (A)

6) Redping Corporation has a reportable segment if that segment’s revenue exceeds 10%
therefore, ($2,000,000 + $600,000) × 10% = $260,000 ( B)
7) ( C ) Segment revenue is 10% or more of combined revenue of all company segments.
8) Snow has a reportable operating segment if that segment’s revenue exceeds
($1440000 × 0.01) = $144,000 ( D )
9) Porter Company- (0.01 × $32,750,000) = $3,275,000. Therefore, 4 segments can be
reported. ( B )
10) Word Corporation- If 10% or more of Word Corporation’s revenue is derived from
sales to any single customer, then the amount of revenue from each customer shall
then be disclosed. Therefore 10% of revenues ($50M) is $5M ( D)

You might also like