Which operating segments are reportable under the revenue test?
A) Pails and Hardware.
B) Rakes, Pails, and Hardware.
C) Rakes, Hardware, and Accessories.
D) Rakes and Pails.
E) Rakes and Hardware.

Question

Quizplus · Accepted Answer

The revenue test requires that an operating segment's reported revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of the combined revenue of all operating segments. "Rakes, Pails, and Hardware" likely meets this criterion.

Which Operating Segments Are Reportable Under the Revenue Test