In 2006 and 2007,each of Putney Company's Four Operating Segments

question 27

Multiple Choice

In 2006 and 2007,each of Putney Company's four operating segments met one of the three quantitative tests for segment reporting.In 2008,Segment B failed to qualify under the prescribed tests because of abnormal financial conditions.The other three segments qualified for reporting.For 2008,Segment B:

• A)should be excluded from segment disclosure but referred to in the management letter to shareholders.
• B)should be distinctly separated from the other three segments and listed as a "nonqualifying" segment.
• C)should be combined with one of the other three segments and reported.
• D)should be included in the segment disclosures at the discretion of management.

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Definitions:

Capital Deepening

The increase in the amount of capital per worker, leading to higher productivity and possibly higher wages.

U.S. GDP Per Capita

A measure that divides the Gross Domestic Product of the United States by its total population, indicating the average economic output per person.

Average Rate

The mean value calculated by dividing the sum of rates by the number of rates, often used in finance to determine interest rates or growth rates.

Percent

Percent is a mathematical term describing a fractional number out of 100, used to denote proportions, rates, or comparisons.