Zeus Corporation Has Determined That It Has 15 Reportable Operating

question 13

Multiple Choice

Zeus Corporation has determined that it has 15 reportable operating segments.In order to comply with the standard for segment disclosures,Zeus Corporation should do which of the following?

• A)Report 10 reportable segments and disclose the remaining 5 segments as other operating segments.
• B)Report 10 reportable segments by combining the most closely related segments.
• C)Report 15 reportable segments as long as the 75 percent revenue test has been satisfied.
• D)Report 12 reportable segments and show all other operating segments in a column labeled "Other Operating Segments."

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Definitions:

Impaired Goodwill

A situation where the value of goodwill on the balance sheet exceeds its fair value, indicating that it has lost some or all of its value.

Amortization

The gradual reduction of a debt or the spreading out of capital expenses for intangible assets over a specific period of time for accounting and tax purposes.

Patent Rights

Legal entitlements granted to inventors that allow them to exclude others from making, using, selling, or importing their invention for a certain period.

Straight-Line Method

A depreciation technique where an asset's cost is evenly spread over its estimated useful life, resulting in equal annual depreciation expenses.