Which Tests Must a Company Use to Determine Which Operating

question 20

Multiple Choice

Which tests must a company use to determine which operating segments require separate disclosure?

• A) revenue test and asset test.
• B) revenue test, profit or loss test, and asset test.
• C) revenue test and profit or loss test.
• D) profit or loss test and asset test.
• E) revenue test, asset test, and liability test.

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Definitions:

Symmetrical

Having properties of symmetry, where one side of an object or design mirrors the other side in size, shape, and position.

Conserve Quantity

The understanding that quantity does not change with physical alteration of objects, part of cognitive development in children.

Differently Shaped

Describes objects, elements, or figures that do not share the same form or outline.

Pennies

Small denominational coins used in various currencies, often representing the smallest monetary unit.