An Enterprise Has Eight Reporting Segments

question 36

Multiple Choice

An enterprise has eight reporting segments.Five segments show an operating profit and three segments show an operating loss.In determining which segments are classified as reporting segments under the operating profits test,which of the following statements is correct?

• A)The test value for all segments is 10% of consolidated net profit.
• B)The test value for profitable segments is 10% or more of those segments reporting a profit,and the test value for loss segments is 10% or more of those segments reporting a loss.
• C)The test value for loss segments is 10% of the greater of (a)the absolute value of the sum of those segments reporting losses,or (b)10% of consolidated net profit.
• D)The test value for all segments is 10% of the greater of (a)the absolute value of the sum of those segments reporting profits,or (b)the absolute value of the sum of those segments reporting losses.

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Definitions:

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Offspring genetically related to their parents, distinguishing from adopted or stepchildren.

Sole Physical Custody

a legal arrangement wherein one parent is granted the exclusive right to have the child live with them; the other parent may have visitation rights.

Joint Legal Custody

A legal arrangement whereby both parents share the rights and responsibilities to make decisions about their child's upbringing, including education, healthcare, and religious instruction.

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