A Segment of a Business Enterprise Is to Be Reported

question 6

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

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Definitions:

Debts And Obligations

Financial commitments or responsibilities, such as loans and promissory notes, that an entity is required to pay to others.

Future Economic Benefits

The capability to assist in the direct or indirect increase of cash and cash equivalents for an organization.

Economic Entity Assumption

An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.