60.1K

Verified Solution

Link Copied!

5. Which of the following is not a threshold for an operating segment to be deemed reportable?

1. Revenue equals or exceeds 10% of total revenue from internal and external parties.

2. Assets equal or exceed 10% of total segment assets.

3. The absolute value of operating profit equals or exceeds 5% of the total segment operating profit for those segments with profits.

4. The absolute value of operating profit equals or exceeds 10% of the greater of total segment operating profit (loss) for those segments with profits (losses).

6. Which of the following is not a similar characteristic required for aggregating operating segments under U.S. GAAP?

1. Product and service

2. Type or class of customer

3. Regulatory environment

4. Positive net income

7. On January 1, Styles Corporation, a U.S. Company, purchased 100,000 pounds when the exchange rate was $1.25. On January 31, the exchange rate dropped to $1.20. What journal entry, if any, is required?

1. DR Foreign exchange loss$5,000

CR Cash-British pound account$5,000

2. DR Unrealized exchange loss$5,000

CR Cash-British pound account$5,000

3. DR Foreign exchange loss$125,000

CR Cash-British pound account$125,000

4. DR Unrealized exchange loss$125,000

CR Cash-British pound account$125,000

Answer & Explanation Solved by verified expert

See Answer