It Is Possible for Segments to Qualify as Reportable, but Not

question 49

Multiple Choice

It is possible for segments to qualify as reportable, but not represent a material portion of the enterprise.What test is applied to ensure the segments reported represent a significant portion of enterprise activity?

• A)​Combined external segment revenues for reportable segments exceed 75% of internal and external segment revenues.
• B)​Total internal and external segment revenue exceeds 75% of total consolidated revenue.
• C)​Total external segment revenue of the reportable segments exceeds 75% of consolidated revenue.
• D)​Total segment assets of the reportable segments exceeds 75% of total consolidated assets.

---

Definitions:

Eutrophication

The process by which a body of water becomes enriched in nutrients, leading to plant growth and depletion of oxygen.

Inorganic Fertilizer

Fertilizers made from synthetic, chemically manufactured compounds primarily to supply essential nutrients to plants.

Salty Soil

Soil that contains a high level of soluble salts, often making it unproductive for agriculture due to its effect on the osmotic balance of plants.