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In Determining Whether a Segment Should Be Reported, a Profit

Question 10

Multiple Choice

In determining whether a segment should be reported, a profit and loss test can be used.The test selects segments for reporting by:


A) ​only including profitable segments.
B) ​comparing the absolute value of a segment's profit or loss to 10% of all segments cumulative profit or cumulative loss, whichever is higher.
C) ​comparing the absolute value of a segment's profit or loss to 10% of all segments combined profits and losses.
D) ​comparing the profit or loss of a segment to 10% of all segment external revenue.

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