Cole Company Has the Following 2014 Financial Data

question 30

Multiple Choice

Cole Company has the following 2014 financial data:
Cole Company should add segments if

• A)the sum of its segments' external revenue does not exceed $600,000.
• B)the sum of its segments' external revenue does not exceed $825,000.
• C)the sum of its segments' revenue including intersegment revenue does not exceed $600,000.
• D)the sum of its segments' revenue including intersegment revenue does not exceed $825,000.

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Definitions:

Definition

A precise explanation of the meaning of a word or phrase, often distinguishing it from similar concepts.

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying goods to a particular trade.

Consideration

The value (such as money, goods, or services) that is given by one party to another in exchange for a contractual promise.

Consumer Lease

An agreement in which a consumer agrees to rent a good, service, or property for personal, family, or household use for a specified period.