An Operating Segment Is Significant and Reportable If It Satisfies

question 30

Multiple Choice

An operating segment is significant and reportable if it satisfies at least one of three tests. Which of the following is not one of those three tests?

• A) profit test
• B) revenue test
• C) asset test
• D) ratio test

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Definitions:

Unfair Competition

Business practices that are deemed unethical or illegal, aiming to gain an unfair market advantage.

Oligopolist

An oligopolist is a participant within an oligopoly, which is a market structure characterized by a small number of firms dominating the industry, often leading to limited competition and higher prices for consumers.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Long Run

A period of time in economics during which all factors of production and costs are variable, and all adjustments can be made within the economy.