For an Operating Segment to Be Considered a Reporting Segment

question 29

Multiple Choice

For an operating segment to be considered a reporting segment under the revenue threshold,its reported revenue must be 10% or more of

• A)the combined enterprise revenues,eliminating all relevant intracompany transfers and balances.
• B)the combined revenues,excluding intersegment revenues,of all operating segments.
• C)the combined revenues,including intersegment revenues,of all operating segments.
• D)the consolidated revenue of all operating segments.

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Definitions:

Intra-Entity Transfer

Transactions involving the transfer of assets or liabilities between divisions within the same company.

Consolidation Process

The procedure of combining and presenting the financial results of several subsidiaries and the parent company as one cohesive financial statement.

Noncontrolling Interest

The portion of equity interest in a subsidiary not held by the parent company.

Downstream Transfers

Transactions involving the transfer of goods or services from a parent company to a subsidiary or among subsidiaries.