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:

Closed-End Credit Agreement

A loan agreement where the borrower receives the entire loan amount upfront and agrees to repay it, along with any interest and fees, over a specific period.

FCCPA

Fair Credit Collection Practices Act, U.S. federal law designed to protect consumers from abusive, deceptive, and unfair debt collection practices.

Consumer Credit Transaction

A transaction between a seller/creditor and a consumer where credit is offered or extended to the consumer for the purchase of goods, services, property, or money.

FCC's Open Internet Rules

Regulations designed by the Federal Communications Commission to ensure net neutrality, prohibiting internet service providers from discriminating against or charging differently for different content.