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:

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, momentarily retaining impressions of sensory information after the original stimuli have ended.

Proactive Interference

A phenomenon where old memories hinder the capacity to remember new information.

Retroactive Interference

The phenomenon where newly learned information interferes with the recall of information learned previously.

Misinformation Effect

The phenomenon in which a person's recall of episodic memories becomes less accurate due to post-event information.