An operating segment is a reportable segment if it
A) satisfies the revenue, profit, and asset tests.
B) satisfies the revenue, profit, or asset tests.
C) operates predominately within a single industry.
D) satisfies the net income test.

Question

Quizplus · Accepted Answer

An operating segment becomes a reportable segment if it meets any one of the following quantitative thresholds: the revenue test, the profit or loss test, or the asset test. This means it only needs to satisfy one of these criteria, not all, to be considered reportable.

An Operating Segment Is a Reportable Segment If It