QUESTION 20-17 Multiple choice (PFRS 8)

1. Entity-wide disclosures include all, except

a. Information about products
b. Information about geographical areas
c. Information about major customers
d. Information about intersegment revenue
2. Which statement is true about major customer disclosure?
a. A major customer is defined as one providing revenue which amounts to 10% or more
of combined external revenue of all operating segments.
b. The identities of major customers need not be disclosed.
c. The entity shall disclose the total amount of revenue from major customers.
d. All of these statements are true about major customer disclosures.
3. Which entity is required to report on business segments?
a. Publicly traded
b. Not for profit
c. Joint venture
d. Nonpublic
4. An entity must disclose all of the following about each reportable segment if the amounts are
used by the chief operating decision maker, except
a. Depreciation expense
b. Allocated expense
c. Interest expense
d. Income tax expense
5. An entity shall disclose for each reportable segment all of the following specified amounts
included in the measure of profit or loss, except
a. Revenue from external customers
b. Revenue from internal customers
c. Interest revenue
d. Gain on disposal of investment
6. An entity shall disclose for each reportable segment all of the following specified amounts
included in the measure of profit or loss, except
a. Depreciation and amortization
b. The entity's interest in the profit or loss of associate.
c. Income tax expense
d. General corporate expenses
7. An entity must disclose all of the following about each reportable segment if the amounts are
used by the chief operating decision maker, except
a. Unusual items
b. Income tax expense
c. Intersegment revenue
d. Cost of goods sold
8. For segment reporting purposes, which test must be applied to determine if a component is a
reportable operating segment?
a. Revenue test and asset test
b. Revenue test, asset test and profit or loss test
c. Revenue test, asset test and expense test
 d. Revenue test, asset test and cash flow test
9. What is the practical limit to the number of reportable operating segments?
a. Five segments
b. Ten segments
c. Six segments
d. Four segments
10. The approach used in segment reporting is known as
a. Segment approach
b. Revenue approach
c. Management approach
d. Enterprise approach