WorksheetsAE17 Live quiz 1
Total questions: 10
Worksheet time: 5mins
An operating segment is a component of an entity
that engages in business activities from which it may earn revenues and incur expenses
whose operating results are being reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance
for which discrete financial information is available
All of these
The method used to determine what information to report for operating segments is referred to as the
Segment Approach
Management Approach
Enterprise Approach
Operating Approach
Which of the following is likely to qualify as an operating segment?
Corporate Headquarters
Post Employment Benefit Plans
Start-up Operations
Functional Departments that do not earn revenues or earn revenues that are only incidental to the activities of the entity
An entity shall report geographical information for revenues from external customers attributed to
a. The entity's country of domicile
b. All foreign countries in total
Both a and b
None of the choices
Which statement is incorrect regarding related party relationships and transactions?
Related party relationships are a normal feature of commerce and business
Related parties may enter into transactions that unrelated parties would not
Transactions between related parties may not be made at the same amounts as between unrelated parties
The profit or loss and financial position of an entity may be affected by a related party relationship only if related party transactions occur
Which of the following statements is incorrect?
a. Related party transactions and outstanding balances with other entities in a group are disclosed in an entity’s financial statements.
a. Intragroup related party transactions and outstanding balances are not eliminated in the preparation of consolidated financial statements of the group.
Related party relationships are a normal feature of commerce and business
a. A related party relationship could have an effect on the profit or loss and financial position of an entity.
a. Knowledge of related party transactions, outstanding balances and relationships may affect assessments of an entity’s operations by users of financial statements, including assessments of the risks and opportunities facing the entity.
Which of the following statements is correct?
I. The profit or loss and financial position of an entity may be affected by a related party relationship even if related party transactions do not occur.
II. The mere existence of the relationship may be sufficient to affect the transactions of the entity with other parties.
True, True
True, False
False, True
False, False
Public Market is a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets.
True
False
Its function is to decide on resource allocation and performance assessment of the operating segments
Segment Manager
Chief Operating Decision Maker
Corporate Officer
Unit Manager
Major customer is a single external customer from which an entity derives 10% or less of its revenues.
True
False
