A Segment of a Business Enterprise Is to Be Reported

question 24

Multiple Choice

A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the

• A) Combined net income of all segments reporting profits
• B) Total combined revenues of all segments reporting profits.
• C) Total revenues of all the enterprise's industry segments.
• D) Total export and foreign sales. .

---

Definitions:

Journal Entry

A record in the accounting ledger that represents a single transaction and its effect on accounts.

Process Costing System

An accounting method used for homogenous products, allocating production costs based on the processes or departments through which the products pass.

Work in Process Inventory

Items that are in the process of being produced but are not yet complete.

Raw Materials Inventory

The total cost of all the materials that are held by an organization and that will be used in production to create goods.