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

question 10

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 revenue test only, which segments are reportable?

• A)Segments A and C only
• B)Segments B and D only
• C)Segments B, C, and D only
• D)All the segments are reportable.

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Definitions:

Invariant Relationship

A consistent, unchanging relationship or pattern under a particular set of conditions.

Distance Cue

Visual indicators that allow the perception of depth or distance, such as overlapping objects, size variation, and linear perspective.

Binocular Disparity

A depth cue based on the differences between the two eyes’ views of the world. This difference becomes less pronounced the farther an object is from the observer.

Binocular Disparity

The difference in the images seen by the left and right eye due to their different viewpoints, contributing to depth perception.