Brief Exercise 1
Presented below are four segments that have been identified by Haley Productions:
|
Total Revenue
|
Operating
|
|
|
Segments
|
(Unaffiliated)
|
Profit (Loss)
|
Identifiable Assets
|
|
A
|
$255,000
|
$30,000
|
$900,000
|
|
B
|
600,000
|
(55,000)
|
800,000
|
|
C
|
225,000
|
6,000
|
450,000
|
|
D
|
90,000
|
4,000
|
225,000
|
For which of the segments would information have to be disclosed in accordance with professional pronouncements?
Segments A and B
Segments A and D
Segments A, B, C, and D
Segments A, B, and C
Brief Exercise 2
At December 31, 2014, Grinkov Corporation had the following account balances.
|
Installment Accounts Receivable, 2013
|
$65,000
|
|
Installment Accounts Receivable, 2014
|
110,000
|
|
Deferred Gross Profit, 2013
|
23,400
|
|
Deferred Gross Profit, 2014
|
41,800
|
Most of Grinkov's sales are made on a 2-year installment basis.
Indicate how these accounts would be reported in Grinkov's December 31, 2014, balance sheet. The 2013 accounts are collectible in 2015, and the 2014 accounts are collectible in 2016.