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:

Common Resource

A type of good that is rivalrous but non-excludable, meaning its use by one individual diminishes its availability for others, but no one can be effectively excluded from using it.

Overuse

Utilization of a resource or service to an extent that exceeds its sustainable capacity.

Nonrival

A property of certain goods where one person's consumption does not diminish the availability of the good for others.

Excludable

A property of a good or service wherein it is possible to prevent people who have not paid for it from having access to it.