In Determining Whether a Segment Should Be Reported, a Profit

question 10

Multiple Choice

In determining whether a segment should be reported, a profit and loss test can be used.The test selects segments for reporting by:

• A)​only including profitable segments.
• B)​comparing the absolute value of a segment's profit or loss to 10% of all segments cumulative profit or cumulative loss, whichever is higher.
• C)​comparing the absolute value of a segment's profit or loss to 10% of all segments combined profits and losses.
• D)​comparing the profit or loss of a segment to 10% of all segment external revenue.

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