1
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi location enterprise.
The possibility that in order to constitute a single operating segment, the wine and spirit distribution has been combined with the distribution of personal care products.
2.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi location enterprise.
The reason behind third quarter revenue not being traceable with third quarter revenues shown in income statement.
3.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi location enterprise.
If it is better to show more or fewer segments in financial statements.
4.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi location enterprise.
The reason behind two segments, having immaterial sales revenue compared to consolidated sales revenue being showcased as reportable segments.
5.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi locational enterprise.
The reason behind interest expense on company’s bonds payable being allocated to various segments.
6.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi locational enterprise.
Total segmental net sales exceeding the net sales of entire company.
7.
Introduction: Segmental information means information regarding different products or services provided by an organization and its operational departments in different territorial jurisdictions, which helps in assessing the risks and returns associated with the distribution of such multi locational enterprise.
Possibility to roughly calculate segment’s annual cash flow.
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Chapter 12 Solutions
Advanced Accounting
- Accounting is the process of matching Select one: a. Revenues and Costs b. Potential and Real performance c. Cash inflows and outflows d. Benefits and Costs Accounting provides information on Select one: a. All of the answers are correct b. Financial conditions of an institution c. Company's tax liability for a particular year d. Cost and income for managers Public Accounting, as a sub-discipline of accounting, includes: Select one: a. Management Accounting b. Cost accounting c. Internal auditing d. Managerial Advisory servicesarrow_forwardIdentify any Two (2) Public Listed Company listed under the Main Market of Bursa Malaysia originating from the same industry. Download the most recent annual report of the companies you have chosen. Analyze and compare the annual reports and critically assess the difficulties in preparing a set of useful financial statements, which exhibits all the primary qualitative characteristics necessary for all users of financial statements( E.g. Comparability ). How well do you feel that your chosen companies have achieved this purpose ? ( Minimum 1200 words )arrow_forwardDisclosure of the accounting estimates involved when preparing financial statements enables users of financial statements to better understand how the financial information is derived, and it enables comparisons between companies regarding the basis on which management makes decisions. Required: Reflecting on topics we discussed throughout the semester, provide three examples of how different accounting estimates or accounting policies impact the profit reported by the firm.arrow_forward
- (Segment Reporting—Theory) The following article appeared in the Wall Street Journal.Washington—The Securities and Exchange Commission staff issued guidelines for companies grappling with the problem of dividing up their business into industry segments for their annual reports.An industry segment is defined by the Financial Accounting Standards Board as a part of an enterprise engaged in providing a product or service or a group of related products or services primarily to unaffiliated customers for a profit.Although conceding that the process is a “subjective task” that “to a considerable extent, depends on the judgment of management,” the SEC staff said companies should consider . . . various factors . . . to determine whether products and services should be grouped together or reported as segments.Instructions(a) What does financial reporting for segments of a business enterprise involve?(b) Identify the reasons for requiring financial data to be reported by segments.(c) Identify…arrow_forwardPlease analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimiarrow_forwardExplain five (5) qualitative characteristics of IFRS that is used to prepare financial statements to your colleagues at the meeting. Explain the difference between profit and profitability. Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.arrow_forward
- Choose three stakeholders (or stakeholder groups) for Walmart and prepare a written response for each stakeholder. In your written response, consider the factors about the business the particular stakeholder would be interested in. Consider the financial and any nonfinancial factors that would be relevant to the stakeholder (or stakeholder group). Explain why these factors are important. Do some research and see if you can find support for your points.arrow_forwardAn accountant must be familiar with the concepts involved in determining earnings of a business entity. The amount of earnings reported for a business entity is dependent on the proper recognition, in general, of revenues and expenses for a given time period. In some situations, costs are recognized as expenses at the time of product sale. In other situations, guidelines have been developed for recognizing costs as expenses or losses by other criteria. Instructions a. Explain the rationale for recognizing costs as expenses at the time of product sale. b. What is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain. c. In what general circumstances would it be appropriate to treat a cost as an asset instead of as an expense? Explain. d. Some expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the underlying rationale…arrow_forwardFinancial statements may be prepared for which time period? Select one: a. Any time period. b. One year. c. Less than one year. d. More than one year. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a management accounting report is more likely to: Select one: a. Be used by decision makers outside of the business organization. b. View the entire organization as the reporting entity. c. Focus upon the operation results of the most recently completed accounting period. d. Be tailored to the specific needs of an individual decision maker. The accounting principle that assumes that a company will operate in the foreseeable future is: Select one: a. Going concern. b. Liquidity. c. Objectivity. d. Disclosure. The cash account of Grande Home Improvement Store shows the following: a debit on June 1 for $25,000; a credit on June 5 for $10,000, a debit on June 16 for $14,000, and a credit on June 27 for $8,000. What is the…arrow_forward
- Which of the accounting controls ensure that a company's resources are used efficiently and economically? Select one: a. All of the available choices b. Making use of any payment discounts that are available c. Paying bills on time Od. Bidding for suppliersarrow_forwardDiscuss how the contents of your organisation’s annual financial statements can demonstrate business performance to external stakeholders for example lenders and investors. Within your discussion you are required to explain FIVE different financial ratios which would be of relevance to these stakeholdersarrow_forwardExplain five (5) qualitative characteristics of IFRS that is used to prepare financial statements to your colleagues at the meeting. (ii) Explain the difference between profit and profitability. (iii) Explain the concept of going concern and the implication of revocation of going concern assumption when financial statements are prepared.arrow_forward
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