Note: This Is a Kaplan CPA Review Question

question 33

Multiple Choice

Note: This is a Kaplan CPA Review Question
Which of the following characteristics would render the operating unit "reportable"? The operating unit comprises at least:

• A) 5 percent of the assets of a company as a whole.
• B) 10 percent of the revenues of the company as a whole.
• C) 50 percent of the long term debt of the company as a whole.
• D) 20 percent of the operating profit of the company as a whole.

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Definitions:

Deserted Island

An uninhabited or sparsely populated island often used in economic theories and thought experiments to illustrate principles of survival, scarcity, and choice.

Consumer Preference

Consumer preference refers to the subjective tastes and choices of individuals regarding different goods and services, influenced by factors such as price, quality, and personal tastes.

Indifference Curves

Graphical representations in economics that show different combinations of two goods that provide equal satisfaction and utility to a consumer.

Consumption Choice

The decision made by consumers on how to allocate their income among various goods and services to maximize their utility.