Q E TIO 18- 7 ul ipl ·, hoi -

(P}.,RS 8)

"'"?., .....
nt re or in h U apply to

ntity only. ments of an

p r to financial s t
n olidated financial state1uents of a group only.
Both th_ sep a e financial
state.ments of a entity
.

.nd the consolid ted financial

statements of a group.
d. either the separate· financial
stawments of an entity
statements. of a group.
nor the consolidated financial

2. If financial report contains

a
both the co?solidated
of a parent and the .par?nt separa?e
s
fin ncial statements is required in
financial statements, segment information
·

The separate financial statements

onJy
stat?ments only
a.
b. The consolidated financial
...

and cor1solidated financial

.
.
_

c. Both the separate

statements financial
the separate nor the consolidated
d. Neither
statements

is component of an entity
3. An operating segment a

a. That activities from which it may

engages in business ·

earn revenue expenses. and incur

regularly reviewed by
_
_

b. Whose operating results are

maker.
the entity's chief operating decision
For which discrete information is available.
c.
d. All. of these characterize an operating segment. _

•
l

quantitative threshold is not a requirement in

4. Which ,

· quali.fying a reportable segment? .

-

·The segment revenue, both external and internal is

a.
inter?al
·

10% or more. of the combined. external and

·

revenue of. all operating segments.

b. The segment profit .or loss is 10% or more of the greater
between ?he combined profit of profitable segments·
and com bined loss· of unprofitable segments.
·

c. The segment assets are 10% or more of the combined·

_

assets of all operating segments. -

d. The segment assets are 20% or more of the comb?ed ·

assets of all operating segments.

280
 5, Whic!1
st \t meat is tt·ut co11c, .ning th 75% overall
test tor rep rt.ablo size
A merit ?
a. The totul. ext.
r n n ] and
intern 1 r venue of all
report 1ble ae tuent
is 75% or moro of the entity's
xternal r venue.
b, The total external
revGnue of all reportable is
75% or more of the segments
entity's external and internal revenue.
c. The total external
revenue of ·allreportable segments
is 75% or of
.more the entity's external
d. The total internal revenue.
revenue of all reportable segments
is 75% or more of the
entity's internal revenue.
6. The term "chief ope·rating decision maker
a. Refers to a
manager with .a specific title.
b. Must be disclosed
by title in the financial reporting
for segments.
c. Must be describe.cl in the
disclosures for the financial
reporting for segments.
d. Refers to a function of
.

allocating. resources to the

operating segments and assessing their performance.
.
.

7. Which statement is not true with respect to a chief

operating decision maker?
a. The term chief operating decision maker
identifies a
function and not necessarily a with
manager a specific title.
b. In some cases, the chief operating decision· maker
could be the chief operating officer.
·

The board' of directors. acting collectively

c.
could qualify
.

as the chief operating decision maker.

d. The chief internal auditor who re.ports to
directors usually plays a very important roe an wou
1the
bdoard
1odf
generally qualifyas ?hief
operating decision maker. ·

ANSWER 18-17

1. .c· 6. d
2. b 7. d
3. d
4. d
:5. C

261
 hol (PFR 8)
I N 18-18 Mui lpl
·

QU 'S
quit din r lation to op r ting
ho di lo u r
l. Wh 1t 11.
·

?
the operatingee,gment.
ral inforrnation about
n
about segment pl'Ofitor lose, including
b. Information
and expenses includedin profit or
specifi d revenue segm11ntliabilities.
loss, segment assets and
of total segment revenue, and total
c. Reconciliations segment ?ljsets total
total
segment profit or loss, correspondmg amounts in
to the
segment liabilities
the entity's financial
·st?tements ..

be disclosed.
d. AU of these are requiredto
which of the following general
An entity shall disclose
·

ll.
information?
used to identify -the r?portablese-gmertts
a. Factors
and services
b. Types of products·
·

the reportable segments and

Factors used; to identify
c.
of 'products and services
types
of directors·
.

d. N ? mes of the board

an ?ntity?houl? provide
3. Segment reporting requires .that
reconcihat10·ns of segment
.1nforµiatioh Which:is ..
not
·
a

;1
·

required reconciliation?
.

tO'the
}EiveriuEl
segments'
a. Th? total ·of the reportable ·
, ·. ·
·•

entity reveriue
·
.
.

segiiients'?rofit loss to
··

b. The tot3.lof the ?eP,ortable

loss before taJC'\'eJCp?nseand
or

· t?e en?1typrofit o: ·
·
··
·

··
·
·
·

d1scont1nued operations··
c. The total number of customers m.ajo? of\anaegments
customers' ofthe entity
to the tot?l number of major
the reportable segments' as!Je? ¥1;-J,Pe
d.
;?t:fyo!??:!
ANSWER 18?18

1. d
2. C
3. C

262
QUESTION 18-19 Multiple
choice (PFRS 8)
I. Entity·wide
diaclo8ures include ll, except
a.
b.
lnforina?onnboue products and services
lnformat?onabout goograpbical areas
c,
Informat?onabout rnajor customers
d. Information about
intersegment sales
2. Which s tatilment is true about
disclosure? major customer

a. A major customer is defined as

which amounts to 10% or
one providing revenue
more of combined external
reve?ue of ?11operating·
b. T.he identities of major segments.
customers need
disclosed. not be
c. The enti?y shall disclose
.
from IhaJor·;customers. the total ·
amount of revenue·
d .. ?l of these state?ents are true about major customer
r
disclosures. .
·

Operating segm?ntsthat
.

3. do not meet
.

any of the quantitative

?hy;eshold?. ..
.
-.
·

a. .Cannot be?.consider-ed.
·reportable. ·

-b. May be considered. reportable' and .

separately disclosed
if. management believes that information about the
segment would' be useful; to the statement users. .

·c. May. be considered reportable and· ·separately disclosed .

: if-the. irtformati'dn is for internal

.

use only:' ·

.
d. May be considered reportable and separately.disclosed
·

if this }s the practice within the .eeonomic

.environment .

4? Infinancial reportir1,gfor op??ativ.gsegments,

.

::
.shall disclose all of the following, except
·

..
an
.entity
.

' .

...

a. Types of product?_an? ser_vicesfrom which each

reportable- segmen? derives .its rev??ue. ·
·

b, The -title of the

chd1ef
?fyperha?ng··_d?ct1sb11on
makern.
.
.

..

c -Factors used to i. enti

..
repor se_gme
\s. .
t e a e .·

.
d. The· basis of measurement .
of segment profit or loss.

ANSWER 18:-19
L d 3. b
.

2. ·
d 4. b

263
 8)
Multiple ohc;,ic (PFR
QUESTION
18-20
segment a
sach reportable
l. An entity
shall dis •loao tor except
all of the following,
mqasure of
regularlyprovidedto
.

Profit or loss
is
if such amount
a.
b. Total a?sets decision maker provided ..»

the chief operating ie regularlY

Total liabilities if such amount maker
c. decision
to the chief operating
d. Net assets all
segm?nt
for each. report.able
included m the
2. An entity shall disclose amounts
of the following specified
except' loss,
measure of profit or
customers
a. Revenue from external with other operating
b. Revenue from transactions
entity
·

segments of the. same .

Interest revenue
c.
investment.
d. Gain 'on dispo?? of
segillllnt all
disclose- for each reportable in the
a.J!liJuntsincluded
3. An ?ntity shall
of the following
specified
of profit or loss,
except.
measure ,;

Depreciation.and amortization of associate

in the profit or Joss
a.
b. The f?tity's
Utterest
venture accounted for•by,the equity method .

Joint and .,
·

. .

c.: Income tax expense ..

.

Gene.ralcorporate -expenses.
.

d.
,

the number oft, E1Part lltbl e

4.What ?s the practicallimit. to
,
·
·
· · ·.

operatmg segments?,
a. segments·
Five
segments-
b. .T?n.
c. Six se:gmenta.,
d. Four segments

ANSWElt .1s-20,
1. d 3. d

·1?· ..
d' ,. b·
QU 'ST ON 18-21 Multiple
cholo tAlCPA Adapted)
I. An industry gment is coneide.red
of the
followingconditions is met, reportable when any
except
u. egment revenue is 10% or more of the combined
revenue of all
.
segn1ents.
b. Segrnent aAsets are 10% or more of the combined
assets of all
segments.
c. Seg·ment liabilities are 10% or more of the combined
liabilities of all ·

d. Absolute
segments.
amount of a
more of the profit or loss is 10% or
segment
co1nbined profit of all that did
not incur segments
a loss.

2. For segment
..
reporting purposes, which tests must be
applied to determine if a
component is a reportable
opera ting 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

3. 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

4·, The approach used in segment reporting is known as

a. Segment approach
b. Revenue approach
c. Management approach
d. Enterprise· approach

265
 .
Depreci tion expense
. _

b. Allocat d xpense
c. Interest ·expense
d. Income tax expense
required for publicly held
7. _Entity-wide d1Sclosure8 are

entities with

a. One reportable segment

b. More. than one reportfible
s_egm.ent· .
.
._.

.reportable
.

and more than

c. One report,able s?gnient
scgme?t, .

d. At least ten segments

of the following is a required

anterprise-wide
8. Which
..
·

· · ,
.. ·

regarding external 'customers?

·

disclosure

The identity of any external customer considered.to

a.
be "maior" by management ..

b. The identity of any external customer providing 10%

or more of .a particular operating segment. revenue
c. Information
on. major customers is· required In not. ·· ·
·

.segment reporting
·
·

.
.
..

partiiulat' external
_

d. The fact that transactions with a

constitute
c_ua,tomer -at least 10%: of the total· entity ·· · ·
--
·"
·
· ·
· · ·
·

revenue

.ANSWER 18-21

l •. c 3. a
2. b 6. b
3. -d 7. C
4. C 8. d
 Q I N

ot
b ity?
obli tionnt
b. from p et v nt
Re, ults in rt outflow
.

of resourc s
d, Liquidation is reasonably· exp c d to quire u of
xisting resources .cl ssified as
.

curr nt ta

2. For a liability to exist

a.A'past transaction or event must have occurred.

b, The exact
amount must be known.
c. The identity of the. party ?wed must be known.
d. An obligation to pay cash in the future must exist.'
3. Which ·

of the following.represents
.

a liability?
a. T.b:e-0bligation to pay for goods that an entity expects
to ?der from
-suppliers next year.
b.
-

The obligation to provide goods that customers

.

ordered
have
and
paid 'for during the current year
c. 'Tha obligation to interest
..

pay on a five-year not?

payable that was issued at year-end. ·
·

d. The obligation to distribute entity's

an own shares next-
year .as a· result of a share dividend.' ·
·

4. Which does not the·

meet definition·qfa liability?·
?-

a. The ·

signing of
three.year e;rnplo?erit .contraet a.
at
.

a
fixed annual salary .
·

b. An obligation to provide goods

,

'or fervjces in the ..

future
A note payable
c.
with.no,spe?edmaturity date·
...

d. An obligation that is estimated in· amount

•I. tr;,
?',?.•
#>
•

!
.
5. fhe corl?eptually8PPropri te ·method
ttability1e to of measuring a

a. ·Discount.the arnount
of expected c?$h
are nee ssary outflows that
?o liquidate the liability using the
market r?te of interest at the date the
initially incurred. liability was
b. Discount
tne amount
of expected
cash outflows that
are necessary to. l?quidate
the. liability using the
market rate of int?rest at
the date of the .financial
stat,ements. ·

c.
Record liability.the amount
as
of cash that would be
required to pay the liabilityin the ordinary course of
business on the date of the
·

financial statements.
d. Record as liability the amount of Gash
actually received
when a liability was incurred.

fhe
G. What is
concept of a
r?la?i?n?hip
liability;
between present value and the
.

'

a. Present .
value is used to measure certain liabilities.
b. Present value· is not used to measure liabilities.
Present value is used to measure
c.
value is used to measure
all
.... liabiliti_es
d Present
.
noncurrent Iiabilities
.
·

only.

7· Which is a characteristic of a current liability but not a.

noncurrent liability?

a. obligation
Unavoidable
.
·b.l
b p.resen t otbligation that entails settlement by pro b a e
.
.

.
.

£er of cash, goods or services

·

future _trans. .

Settlemen?is e x p ectedthswithinwhichever
-·
·-·-· ?·

c.
the normal operating,
b longer
cycle or within 12 mon
d. The obligating event crea ting
.

the liability has already .

. .

occurred·
.

'

"
 nt Ji11bilitiee nd
b twe n ,urr
I ·
l tlu r I tior hip
n ipe itin ·y l ?
scnably
current liabilities i r
yeai-,
i?uidation of cycle or one
the operatinll
ll peel d wfthin .

w hichever is longer the reeult of operating

liabilities are
h. Current .

transact,ions e,cceedthe amount incurred

cannot
c. Current liabilities
in one operating
cycle .

the two
between
d. There is no relationship
of current
acceptable presentation
9. Which is not an
·

liabilities?
in the order of maturity
liabilities
a. Listing current
liabilities according. to amount
that are
b. Listing current against assets
liabilities
Offsetting current
to their liquida?on
c.
to be applied of liquidation
liabilities in the ordel'.
d. Showing
cWTent ·

preference·
is not true regarding the presentation.
10. Which statement with IFRS?
.
.

liabilities in accordance I .

of current
follow the currentliabilities.
a. The noncu??t.li?bilities listed in the order of
b. Curre?t l?ab1ht1es .may be of magnitude or in the
maturity, in ?e.scending. order ·
·

..
order of liqwdity preference.
c. Current liabilities are generally recorded .
.
· ·.
a. t f ace .

amount. .

.d.
.

Current liabiliti?s?houl4not be offset

·
against th. e.
· ·
·

assets used for liquidation.

ANSWER 45-8

1. d. 6. a

2. a 7. C I
'

8. b· 8. a.
4. a 9. C
?. B 10. a