Gollum Ltd Provides the Following Segment Information

question 19

Multiple Choice

Gollum Ltd provides the following segment information:

There are no inter-segment sales. Which of the segments are reportable applying only the segment result test?

• A) Business segments: Industrial manufacturing, project consulting, retailing, agriculture; Geographical segments: Australia, Pacific Islands, US.
• B) Business segments: Industrial manufacturing, project consulting; Geographical segments: Australia.
• C) Business segments: Industrial manufacturing, project consulting, mechanical engineering, retailing, agriculture; Geographical segments: Australia, Pacific Islands, US.
• D) Business segments: Industrial manufacturing, project consulting, agriculture; Geographical segments: Australia, Pacific Islands.
• E) None of the given answers.

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Definitions:

Expected Annual Orders

An estimate of the quantity of orders a company anticipates receiving within a one-year period based on market analysis and sales forecasts.

Present and Potential Sales

Analysis or estimation of current sales figures combined with the forecasted or potential sales in the future.

Relationship Selling

Relationship selling is a sales approach that focuses on creating and maintaining long-term relationships with customers rather than just focusing on immediate sales.

Follow-up

The act of continuing communication or action with a prospect or customer after an initial interaction or sale.