In the Reporting of Segment Revenue Data

question 20

Multiple Choice

In the reporting of segment revenue data:

• A) intra-segment revenue is eliminated as part of the consolidation process so that only sales revenue derived from sales to external customers is reported.
• B) an entity must disclose the segment revenue for each reportable segment, although total intra-segment revenue may be disclosed as a lump sum for all segments.
• C) an entity must disclose the segment revenue for each segment, with revenue from external customers and intra-segment revenue reported separately.
• D) none of the above.

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Definitions:

Drawing Account

A specific account used to record amounts withdrawn by the owner(s) of a business for personal use.

Withdrawals

Amounts taken from a business by its owner(s) for personal use.

Expenses

Costs incurred by a business in the process of earning revenue.

Consuming Services

Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.