It Is Possible for Segments to Qualify as Reportable, but Not

question 49

Multiple Choice

It is possible for segments to qualify as reportable, but not represent a material portion of the enterprise.What test is applied to ensure the segments reported represent a significant portion of enterprise activity?

• A)​Combined external segment revenues for reportable segments exceed 75% of internal and external segment revenues.
• B)​Total internal and external segment revenue exceeds 75% of total consolidated revenue.
• C)​Total external segment revenue of the reportable segments exceeds 75% of consolidated revenue.
• D)​Total segment assets of the reportable segments exceeds 75% of total consolidated assets.

---

Definitions:

Aiding And Abetting

The act of assisting or facilitating another person in the commission of a crime.

Working Papers

Documents that evidence preliminary findings or drafts used in preparing a final document, often in accounting or research.

Accountant-Client Privilege

A legal principle allowing confidentiality of communication between accountants and their clients, similar to attorney-client privilege.

Notes

Legal documents that serve as evidence of a debt, with the issuer promising to pay the holder a specific sum of money at a future date or upon demand.