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:

September

Refers to the ninth month of the year in the Gregorian calendar.

Inventory Cost

The total cost associated with buying or producing goods, including purchase price, materials, labor, and overhead, until they are sold.

Sales

The activities involved in selling goods or services to customers, including the negotiation of sales agreements and the collection of revenue.

Credit Memo

A document issued to a purchaser by a vendor to reduce the amount that the purchaser owes, often as a result of a return or refund.