Question

41. For interim financial reporting, a major repair occurring in the second quarter should be A) recognized in the second quarter B) recognized ratably over all four quarters with the first quarter being restated. C) recognized ratably disclosed by note only in the second quarter. over the last three quarters D) 42. In January 2018, Post, Inc. estimated that its year-end bonus to executives would be $960,000 for 2018. The actual amount paid for the year-end bonus for 2017 was $880,000. The estimate for 2018 is subject to year-end adjustment. What amount, if any, of expense should be reflected in Post's quarterly income statement for the three months ended March 31, 2018? $ -0- A) B) $220,000 C) $240,000 D) $960,000 43. Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting which of the following criteria? A) Segment profit B) Segment profit or loss is 10% or more of combined profit or loss of all company or loss is 10% or more of consolidated profit or loss segments Segment revenue is 10% or more of combined revenue of all the company segments D) Segment revenue is 10% or more of consolidated revenue.

Answer 1

41.
Answer is (B) recognised ratably over the period of four quarters with first quarter being restated
This is because, it is not a regular expense, but uneven expenditure and also major one

42.
Bonus for 1st quarter of 2018 will be recognised as $960000 / 4 = $240000

Answer is (C) $240000

43.
Answer is
Segment revenue is 10% or more of combined revenue of all company segments and segment profit or loss is 10% or more of combined profit or loss of all company segments