Which of the Following Is Not a Quantitative Threshold for Determining

question 8

Multiple Choice

Which of the following is not a quantitative threshold for determining a reportable segment?

• A)Segment assets are 10% or more of the combined assets of all operating segments.
• B)The absolute value of a segment's profit or loss is 10% or more of the greater of (1)the combined reported profit of all operating segments that reported a profit or (2)the absolute value of the combined reported loss of all operating segments that reported a loss.
• C)Segment reported revenue,including intersegment revenues,is 10% or more of the combined revenue (both internal and external)of all operating segments.
• D)Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.

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Definitions:

Floatation Costs

The costs that a company incurs when it issues new securities, including underwriting fees, legal fees, and registration fees.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Personal Income

The total amount of income received by individuals from all sources, including wages, dividends, interest, and government transfers, before any deductions.

Net Taxes

The difference between taxes paid to the government and transfer payments received from the government.