Kaycee Corporation's Revenues for the Year Ended December 31, 2012

question 18

Multiple Choice

Kaycee Corporation's revenues for the year ended December 31, 2012, were as follows:
Consolidated Revenue per the Income Statement: $1,200,000
Upstream Intersegment Sales: $180,000
Downstream Intersegment Sales: $60,000
For purposes of the Revenue Test, what amount will be used as the benchmark for determining whether a segment is reportable?

• A) $24,000.
• B) $120,000.
• C) $138,000.
• D) $144,000.
• E) $0.

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Definitions:

Perception

The organization, identification, and interpretation of sensory information to understand the environment.

Stimulus

Any event or situation that evokes a response from an organism.

Sensation

The method through which sensory receptors and the nervous system detect and depict external environmental stimuli.

Gestalt Psychology

A theory of mind and brain proposing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies; or, the idea that the whole is more than the sum of its parts.