TFA 1

Chapter 20 – Operating Segments

Princess Rachelle Anne M. Tisbe

Question 20-16 Multiple Choice (PFRS 8)

1. What are the disclosures required in relation to operating segments?
a. General information about the operating segment.
b. Information about segment profit or loss, including specified revenue and
expenses included in profit or loss, segment assets and segment liabilities.
c. Reconciliation of total segment revenue, total segment profit or loss, total
segment assets and total segment liabilities to the corresponding amounts in the
entity’s financial statements.
d. All of these are required to be disclosed.

2. An entity shall disclose which of the following general information?

a. Factors used to identify the reportable segments
b. Types of products and services
c. Factors used to identify the reportable segments and types of products and
services
d. Names of the board of directors

3. Segment reporting requires that an entity should provide reconciliations of

segment information. Which is not a required reconciliation?
a. The total of the reportable segments’ revenue to the entity revenue
b. The total of the reportable segments’ profit or loss to the entity profit or loss
before tax expense and discontinued operations
c. The total number of major customers of all segments to the total number of
major customers of the entity
d. The total of the reportable segments’ assets to the entity assets

4. Which of the following is a required enterprises-wide disclosure regarding

external customers?
a. The identify of any external customer considered to be major by management
b. The identify of any external customer providing 10% or more of a particular
operating segment revenue
c. Information on major customers is not required in segment reporting
d. The fact that transactions with a particular external customer constitute at
least 10% of the total entity’ revenue

5. An operating segment is considered reportable when any of the following

conditions is met, except
a. Segment revenue is 10% or more of the combined revenue of all of the entity’s
segments
b. Segments assets are 10% or more of the combined assets of all segments
c. Segments liabilities are 10% or more of the combined liabilities of all
segments
d. Segment’s profit or loss is 10% or more of the combined profit of all segments
that did not incur a loss