The Following Information Was Obtained from the Clovis Company Required:
A

question 17

Essay

The following information was obtained from the Clovis Company:
$\begin{array}{lrrr}\text { Operating } & & \text { Segment } & \text { Profit } \\\text { Segment } & \text { Revenue } & \text { Assets } & \text { (Loss )} \\ \mathrm{A} & \$ 640 & \$ 520 & \$ 88 \\\mathrm{~B} & 124 & 120 & 32 \\\mathrm{C} & 760 & 680 & 40 \\\mathrm{D} & 160 & 240 & (8) \\\mathrm{E} & 32 & 64 & (4) \\\mathrm{F} & 80 & 96 & 16 \\\mathrm{G} & 480 & 400 & 16 \\\mathrm{H} & \underline{120}& \underline{160} & \underline{(48})\\&\$2,396&\$2,280&\$132\end{array}$
Required:
a. Using the revenue test, which segments should be separately reported?
b. Using the asset test, which segments shou'd be separately reported?
c. Using the profit (loss) test, which segments should be separately reported?

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or the initial amount of money borrowed or invested, without compounding.

GICs

A financial vehicle in Canada, Guaranteed Investment Certificates offer investors a set return rate over a defined period.

Simple Interest

Interest calculated on the principal or original amount of a loan or investment, without compounding.

GICs

Guaranteed Investment Certificates (GICs) are Canadian investment vehicles offering a guaranteed rate of return over a fixed period of time.