60.1K

Verified Solution

Link Copied!

1)Operating profits and losses for the 4 industry segments of Brittle Company are as follows:

Candy	($590,000)
Stix	$ 20,000
Chips	$ 85,000
Gum	$ 9,000

Brittle Company uses iGAAP for its external financial reporting. Using only the operating profits (loss) test, which of the segments are reportable?

a) Candy and Chips only.

b) Stix, Chips, and Gum only.

C) Candy only.

d) Under iGAAP, all four segments must be reported.

2)

Nicole, Inc. uses iGAAP for its external financial reporting. During 2009, an employee of the company was injured in the factory. Discussions with corporate attorneys resulted in a determination that the company would be required to pay between $1,000,000 and $2,000,000 to settle the injury claim. Nicole, Inc. accrued a contingent liability on December 31, 2009 for $1,000,000. On February 4, 2011, Nicole, Inc. settled the lawsuit for $2,200,000. What amount of loss should be reported on the income statement for the year ended December 31, 2010 for Nicole, Inc. related to this lawsuit?

a) $2,200,000

b) $1,000,000

c) $1,200,000

d) No extra loss will be recorded in 2010, the remaining loss will be recorded in 2011.

3)

If Benjamin Company and Iris, Inc. are similar companies in every regard, except Benjamin Company uses iGAAP while Iris, Inc. uses U.S. GAAP, which of the following is true?

a) Iris, Inc. is required to issue interim statements every 6 months.

b) Benjamin Company need not recognize post-balance sheet events.

c) Benjamin Company is not required by iGAAP to issue interim statements

d) All of the above are true. 4) iGAAP requires companies to disclose transactions with related parties, including the name of the related party and any doubtful amounts related to outstanding balances for the related party. a) True b) False

Thank you for your help

Answer & Explanation Solved by verified expert

See Answer