Which of the following is not true for an operating segment according to U.S. GAAP?
A. Discrete financial information generated by the internal accounting system is available.
B. The segment is regularly reviewed by a chief decision maker to make resource allocations.
C. The segment recognizes revenues and incurs expenses.
D. An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.
E. The segment is regularly reviewed by a chief decision maker to assess performance decisions.
Answer: D
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Responsibility accounting performance reports:
A. Are irrelevant at the highest level of management. B. Become more detailed at higher levels of management. C. Are usually summarized at higher levels of management. D. Are equally detailed at all levels of management. E. Are useful in any format.
If Deckers Inc, a producer of home siding, decking, and other wood products, focused its marketing efforts to home construction companies only, it would be using a(n) ____ strategy. If it sold the same products to both construction companies and DIY retailers such as Home Depot, it would be using a(n) ____ strategy.
A. undifferentiated; undifferentiated B. undifferentiated; differentiated C. differentiated; multisegmented D. concentrated; differentiated E. concentrated; concentrated
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What will be an ideal response?
Which of the following statements regarding tax payments is true?
A. Sole proprietors are not required to pay income tax or self-employment tax until the return is filed. B. Sole proprietors must make quarterly estimated payments of income tax and self-employment tax. C. Sole proprietors must make quarterly estimated payments of income tax, but self-employment tax is not due until the return is filed. D. Sole proprietors must make quarterly estimated payments of self-employment tax, but income tax is not due until the return is filed.