Questions from Intermediate Accounting

Q: How large must an internally defined segment be for separate financial statement

How large must an internally defined segment be for separate financial statement disclosure to be required?

Q: Is segment information prepared according to GAAP? Explain.

Is segment information prepared according to GAAP? Explain.

Q: Distinguish between the two primary viewpoints concerning the preparation of interim financial

Distinguish between the two primary viewpoints concerning the preparation of interim financial statements.

Q: Why should investors be careful in interpreting interim reports?

Why should investors be careful in interpreting interim reports?

Q: Derivatives are to be reported in the balance sheet at their fair

Derivatives are to be reported in the balance sheet at their fair value on the balance sheet date. How are unrealized gains and losses on derivatives recognized in the financial statements?

Q: How does the accounting for a speculative derivative investment differ from that

How does the accounting for a speculative derivative investment differ from that for a derivative that serves as a hedge?

Q: Why is a derivative often an executory contract? Give another example

Why is a derivative often an executory contract? Give another example of an executor contract.

Q: Briefly describe the four types of risk discussed in the chapter.

Briefly describe the four types of risk discussed in the chapter.

Q: Why are EPS figures computed on the basis of common stock transactions

Why are EPS figures computed on the basis of common stock transactions that have not yet happened rather than on the basis of strictly historical common stock data?

Q: Why would a company enter into an interest rate swap?

Why would a company enter into an interest rate swap?