Matching Key TermsMatch the terms on the left side with the descriptions on the right. A d...

Terms

Descriptions of Terms

1.

Management approach

A.

Based on all assets used by management to assess that business unit’s performance.

2.

Reportable operating segment

3.

10 percent revenue test for segments

B.

Not computed until tax is paid.

4.

Revenue test for material foreign

country disclosure

C.

Each interim period viewed as an installment of an annual period.

5.

Asset test for reportable operating

D.

Includes intercorporate sales and transfers.

segments

E.

Annual statutory tax rate.

6.

Asset test for material foreign country disclosure

F.

Based on long-lived assets used in that business unit only.

7.

Comprehensive segment disclosure test

G.

Values cost of goods sold at the LIFO cost of the goods sold.

8.

Enterprisewide disclosures

9.

Discrete theory of interim reporting

H.

Values cost of goods sold at the expected costs of replacements.

10

Integral theory of interim reporting

11

Recovery of prior write-down for interim inventory valuations

I.

Requires sales to unaffiliated units for separately disclosed segments to be greater than or equal to 75 percent of total consolidated revenue.

12

Interim LIFO liquidations to be replaced by year-end

13

Effective annual tax rate

J.

Segment that must meet each of the three 10 percent segment significance tests.

K.

Product revenues, geographic areas, and information about major customers.

L.

Basis of defining segments for financial statements.

M.

Views each interim period as a basic

accounting period, similar to an annual accounting period.

N.

Recovery allowed by APB 28 (ASC 270 and 740).

O.

Based on sales to unaffiliated entities only.

P.

Not permitted under APB 28 (ASC 270 and 740).

Q.

Estimate of the income tax that will actually be paid for the year.

R.

Segment that has met at least one of the three 10 percent segment significance tests.