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:

Environmental Conditions

The various external factors and contexts, such as weather, climate, and natural settings, that can affect activities, well-being, or performance.

Human Resource Plan

A firm’s overall plan to fill existing and future vacancies, including decisions on whether to fill internally or to recruit from outside.

Legal Changes

Modifications or adjustments made to existing laws or regulations within a legal framework.

Temporary-help Agencies

Agencies that provide workers to companies on a temporary basis, often used to fill short-term needs or seasonal positions.