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?

• 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:

Payable

Refers to an amount of money that is owed by a person, company, or organization to another entity and is due to be paid.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person or entity.

Issued

Released or distributed officially by an authority, such as documents, currency, or rulings.

Bank Clears

The process by which a bank processes transactions and settles payments between parties.