最新のFAR問題集で試験を準備する

According to the FASB conceptual framework, which of the following statements conforms to the
realization concept?

• A. Product unit costs were assigned to cost of goods sold when the units were sold.
• B. Equipment depreciation was assigned to a production department and then to product unit costs.
• C. Cash was collected on accounts receivable.
• D. Depreciated equipment was sold in exchange for a note receivable.

Which of the following types of entities are required to report on business segments?

• A. Not-for-profit enterprises.
• B. Nonpublic business enterprises.
• C. Joint ventures.
• D. Publicly-traded enterprises.

Grum Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its
income statement for the year ended December 31, 1991, Grum reported revenues of $50,000,000,
operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll
costs of $ 15,000,000. Grum's combined identifiable assets of all industry segments at December 31,
1 991, were $40,000,000.
Cott Co.'s four business segments have revenues and identifiable assets expressed as percentages of
Cott's total revenues and total assets as follows:

Which of these business segments are deemed to be reportable segments?

• A. Ebon and Fair only.
• B. Ebon only.
• C. Ebon, Fair, Gel, and Hak.
• D. Ebon, Fair, and Gel only.

On January 2, 1991, Air, Inc. agreed to pay its former president $300,000 under a deferred compensation
arrangement. Air should have recorded this expense in 1990 but did not do so. Air's reported income tax
expense would have been $70,000 lower in 1990 had it properly accrued this deferred compensation in its
December 31,1991, financial statements, Air should adjust the beginning balance of its retained earnings
by a:

• A. $230,000 debit.
• B. $300,000 credit.
• C. $230,000 credit.
• D. $370,000 debit.

Mellow Co. depreciated a $12,000 asset over five years, using the straight-line method with no salvage
value. At the beginning of the fifth year, it was determined that the asset will last another four years. What
amount should Mellow report as depreciation expense for year 5?

• A. $1,500
• B. $900
• C. $2,400
• D. $600