In General,GAAP Encourages the Identification of Reportable Segments Based on the Following

question 19

Multiple Choice

In general,GAAP encourages the identification of reportable segments based on the following:

• A)Reported segments must account for at least 75% of all external and inter-segment sales.
• B)Reported segments must ideally account for at least 75% of all sales,unless there are many smaller divisions and separate reporting would create less clarity in reporting.
• C)If there are more than 10 reportable segments,the company should consider additional aggregation of their segments.
• D)Reported segments must account for 100% of the external sales,but only 75% of external and inter-segment sales.

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