Faulk Ltd Has Provided the Following Information - Under the Profit Test Only, Which Segments Are Reportable

question 20

Multiple Choice

Faulk Ltd. has provided the following information: $$\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { Assets } & \text { Revenues } & \text { Profits } \\\hline \text { A } & \$ 60,000 & \$ 18,000 & \$ 9,000 \\\hline \text { B } & 120,000 & 90,000 & 3,000 \\\hline \text { C } & 120,000 & 52,500 & 15,000 \\\hline \text { D } & 30,000 & 300,000 & 120,000 \\\hline\end{array}$$
- Under the profit test only, which segments are reportable?

• A)Segment A only
• B)Segment C only
• C)Segments A and C only
• D)Segments C and D only

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Definitions:

Emotional Reactions

The spontaneous and subjective feelings triggered by specific stimuli or events.

Zajonc

Refers to Robert Zajonc, a social psychologist known for his work on social and cognitive processes in emotions.

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, a critical indicator of cardiovascular health.

Epinephrine

Also known as adrenaline, a hormone and medication produced by both the adrenal glands and certain neurons, which plays a key role in the body's fight-or-flight response by increasing blood flow to muscles, output of the heart, pupil dilation, and blood sugar.