An Operating Segment Is a Reportable Segment If It

question 117

Multiple Choice

An operating segment is a reportable segment if it

• A) satisfies the revenue, profit, and asset tests.
• B) satisfies the revenue, profit, or asset tests.
• C) operates predominately within a single industry.
• D) satisfies the net income test.

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Definitions:

Surplus Decrease

A reduction in the amount by which the quantity supplied of a product exceeds the quantity demanded.

Consumer Surplus

The gap between the amount consumers are prepared to pay for a product or service and the actual price they pay.

Surplus Increase

Refers to the rise in excess resources or goods available beyond what is needed or consumed.

Sellers' Costs

The expenses incurred by sellers in providing goods or services, including production, labor, and marketing costs.