A Segment Is Considered to Be Significant If Its

question 21

Multiple Choice

A segment is considered to be significant if its:

• A) reported profit is at least 10% of the combined profit of all operating segments.
• B) reported profit (loss) is at least 10% of the combined reported profit of all operating segments not reporting a loss.
• C) reported profit (loss) is at least 10% of the combined reported loss of all operating segments that reported a loss.
• D) reported profit (loss) is at least 10% of the combined reported profit of all operating segments not reporting a loss; and reported profit (loss) is at least 10% of the combined reported loss of all operating segments that reported a loss.

---

Definitions:

Market System

An economic model where the decision-making process regarding investments, production activities, and the distribution of goods adheres to the supply and demand dynamic, with goods and services' pricing governed by a free market mechanism.

Employees

Individuals who work for another person or company in exchange for financial or other compensation.

Suppliers

Entities or individuals that provide goods or services to another entity, typically within a supply chain context.

Capitalism

An economic system where private individuals own and control the means of production and distribution of goods, with minimal government interference.