Ansfield, Inc For Ansfield, Inc

question 62

Multiple Choice

Ansfield, Inc.has several potentially reportable segments.The following financial information has been determined for the current fiscal year: ?

$$\begin{array} { l r } \text { Consolidated net income } & \$ 1,000,000 \\\text { Operating income before taxes } & 1,500,000 \\\text { Net operating income of all segments } & 1,350,000 \\\text { Total consolidated revenue } & 8,000,000 \\\text { Total revenue of all segments, } & \\\text { excluding intersegment sales } & 7,000,000 \\\text { Total intersegment sales } & 1,200,000 \\\text { Consolidated total assets } & 50,000,000 \\\text { Total assets of all segments } & 45,000,000\end{array}$$ For Ansfield, Inc.to report a significant portion of its financial information as segments, its segments, in total, must represent

• A)$37,500,000 in assets.
• B)$6,000,000 in revenues.
• C)$1,125,000 in operating income before taxes.
• D)The answer cannot be determined from the information given.

---

Definitions:

Statistically Significant

A term used to describe a result that is unlikely to have occurred by chance alone, according to a pre-defined threshold of probability, indicating that the findings from a study are likely to reflect a true effect.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Correlation

The degree to which events or characteristics vary along with each other.

Magnitude

The size, extent, or importance of something.