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:

Socially Diverse

characterized by a wide variety of cultures, ethnicities, languages, and social backgrounds within a community or society.

Biodiversity

the variety and variability of life forms within a given ecosystem, region, or the entire Earth, including the diversity of species, genes, and ecosystems.

Plant and Animal Species

Various types of living organisms belonging to the kingdoms of Plantae and Animalia, each distinguished by unique characteristics and genetic makeup.

Evolution

The process through which different kinds of living organisms are believed to have developed from earlier forms during the history of the earth.