Assuming the Three Business Units Below Are Operating Segments and All

question 1

Multiple Choice

Assuming the three business units below are operating segments and all revenue earned are from external customers, in which of the following scenarios does Colourband Ltd need to identify another reportable segment to be disclosed?
$\begin{array}{|c|r|r|r|r|r|r|}\hline \begin{array}{c}\text { Revenue } \\\text { in } \mathbf{\$ 0 0 0}\end{array} & \text { Red } & {\text { Blue }} & \text { Green } &{\begin{array}{c}\text { Total } \\\text { operating } \\\text { segments }\end{array}} & {\begin{array}{c}\text { Other } \\\text { business } \\\text { units }\end{array}} &{\begin{array}{c}\text { Total } \\\text { Colourband } \\\text { Ltd }\end{array}} \\\hline \text { I. } & 75 & 160 & 320 & 555 & 250 & 805 \\\hline \text { II. } & 110 & 140 & 275 & 525 & 175 & 700 \\\hline \text { III. } & 230 & 250 & 375 & 855 & 315 & 1170 \\\hline\end{array}$

• A) I only.
• B) I and II.
• C) I and III.
• D) II and III.

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Definitions:

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its separate net assets, representing aspects like brand reputation, customer loyalty, and other non-physical assets.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Long-Term Investments

Assets held by a company for a period exceeding one year, intended to bring a return on the investment over time.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.