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:

Giving Up

The act of stopping or ceasing to continue an effort, action, or pursuit, often due to discouragement or challenge.

Work Satisfaction

The level of contentment employees feel about their job, including aspects such as tasks, environment, and compensation.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Self-Esteem

The degree to which a person feels confident, valuable, and worthy of respect.