Opto Co. is a publicly-traded, consolidated enterprise reporting segment information. Which of the
following items is a required enterprise-wide disclosure regarding external customers?
At December 31, 1998, Off-Line Co. changed its method of accounting for demo costs from writing off the
costs over two years to expensing the costs immediately. Off-Line made the change in recognition of an
increasing number of demos placed with customers that did not result in sales. Off-Line had deferred
demo costs of $500,000 at December 31, 1997, $300,000 of which were to be written off in 1998 and the
remainder in 1999. Off-Line's income tax rate is 30%. In its 1998 financial statements, what amount
should Off-Line report as cumulative effect of change in accounting principle?
Thorpe Co.'s income statement for the year ended December 31, 1990, reported net income of $74,100.
The auditor raised questions about the following amounts that had been included in net income:
The loss from the fire was an infrequent but not unusual occurrence in Thorpe's line of business.
Thorpe's December 31, 1990, income statement should report net income of:
The following costs were incurred by Griff Co., a manufacturer, during 1992: What amount of these costs
should be reported as general and administrative expenses for 1992?
In financial reporting of segment data, which of the following must be considered in determining if an
industry segment is a reportable segment?
