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:

Market System

This economic structure allows for the determination of investment, production, and distribution through the interplay of supply and demand, ensuring that the pricing of goods and services occurs in an open price system.

Distribution Of Goods

The process of making products available to consumers by transporting and storing them from the point of production to the point of sale.