Farr, Inc Is a Multidivisional Corporation Which Has Both Intersegment Sales

question 5

Multiple Choice

Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting which of the following criteria?

• A) Segment profit or loss is 10% or more of consolidated profit or loss.
• B) Segment profit or loss is 10% or more of combined profit or loss of all company segments.
• C) Segment revenue is 10% or more of combined revenue of all the company segments.
• D) Segment revenue is 10% or more of consolidated revenue.

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Definitions:

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A popular dish of Italian origin, consisting of a flat, round base of dough baked with a topping of tomato sauce and cheese, often with added meat, fish, or vegetables.

Beer

An alcoholic beverage made from barley, hops, water, and yeast through a fermentation process.

Pints

A measure of volume often used for liquids, approximately equal to half a liter or 16 US fluid ounces.

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The assistance and comfort received from others, which can be emotional, informational, or tangible, contributing to an individual's coping mechanism.