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:

Operational Plans

Detailed, short-term strategies designed to achieve specific objectives within a business.

Standing Plans

Established procedures or policies in an organization that guide decision-making and actions for recurring situations or operations.

Single-use Plans

Strategic plans developed for a one-time project or event that are not intended to be repeated or reused.

Operational Plans

Detailed, short-term plans outlining how to achieve the strategic goals of an organization.