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Faru Co. identified five industry segments: (1) plastics, (2) metals, (3) lumber, (4) paper, and (5) finance. Each of these segments had been consolidated appropriately by the company in producing its annual financial statements. Information describing each segment is presented below (in thousands).
Prepare the revenue test and determine which of these segments was separately reportable.
Revenues include sales to outside parties, intersegment revenues transfers, and interest income.
Critical Thinking Skills
The capacity to analyze information objectively and make a reasoned judgment.
Critical Thinking
The process of objectively analyzing and evaluating an issue to form a judgment.
Specific
Clearly defined or identified; precise or particular in detail.
Step-By-Step Sequence
A detailed process or set of instructions presented in a clear, logical order to follow in order to achieve a specific outcome or complete a task.
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