An Operating Segment Is a Reportable Segment If

question 57

Multiple Choice

An operating segment is a reportable segment if

• A)its operating profit is 10% or more of the combined operating profit of profitable segments.
• B)its operating loss is 10% or more of the combined operating losses of segments that incurred an operating loss.
• C)the absolute amount of its operating profit or loss is 10% or more of the company's combined operating profit or loss.
• D)none of these answer choices are correct.

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Definitions:

Low-quality Goods

Products that do not meet the expected standards of durability, performance, or satisfaction.

Advertisements

Messages aimed at influencing the attitudes or behaviors of people, usually for the purpose of selling products or services.

Information Omission

Occurs when crucial details are left out of a communication, potentially leading to misinterpretation or a lack of understanding.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable alternatives in transactions.