Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 39

Medford Company has seven operating segments but only four (G, H, I, and J) are of significant size to warrant separate disclosure.As a whole, the segments generated revenues of $710,000 ($520,000 + $190,000) from outside parties.In addition, the segments had $260,000 in intersegment transfers ($220,000 + $40,000). Which of the following statements is true
a.A sufficient number of segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
b.Not enough segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
c.Not enough segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
d.A sufficient number of segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.