Huey, Dewey, and Louie Are the Three Operating Segments of Donald

question 17

Multiple Choice

Huey, Dewey, and Louie are the three operating segments of Donald Company. Which of the following statements is correct based on the information provided below? $\begin{array}{|l|r|r|r|r|r|r|}\hline\ln \$ 000&\text { Huey }&\text { Dewey }&\text { Louie }&\begin{array}{c}\text { Total } \\\text { operating } \\\text { segments }\end{array} & \begin{array}{c}\text { Other } \\\text { business } \\\text { units }\end{array} & \begin{array}{c}\text { Total } \\\text { Donald } \\\text { Company }\end{array} \\\hline \text { Revenue } & 275 & 130 & 410 & 815 & 295 & 1110 \\\hline \text { Profit/loss } & 100 & 30 & 185 & 315 & 60 & 375 \\\hline \text { Assets } & 355 & 215 & 750 & 1320 & 310 & 1630 \\\hline\end{array}$

• A) Huey, Dewey, and Louie are reportable segments of Donald Company.
• B) Only Dewey and Louie should be disclosed as reportable segments.
• C) Dewey is not a reportable segment as it does not satisfy the profit/loss quantitative threshold.
• D) Donald Company needs to identify another reportable segment from 'other business units' component.

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Definitions:

Formation

The process of creating something, whether geological like rock formations, or formation in general, implying an act of coming into existence.

Continental Hot Spot

A region on a continent where hot plumes of mantle material rise, causing volcanic activity and thermal phenomena.

Continental Rifting

The process by which a continent stretches and splits, possibly leading to the creation of new ocean basins.

Seafloor Spreading

A geological process in which new oceanic crust is formed at mid-ocean ridges and slowly moves away from the ridge.