Which operating segments are separately reportable under the asset test?
A) DVDs only.
B) DVDs and MP3s.
C) DVDs and VCRs.
D) VCRs and MP3s.
E) DVDs, VCRs, and MP3s.

Question

Quizplus · Accepted Answer

The asset test requires a company to report separately on operating segments if their assets meet the quantitative thresholds. Since the question does not provide any asset information, we can assume that the three operating segments, DVDs, VCRs, and MP3s, are all significant enough to be separately reportable. Therefore, the best choice would be E, which includes all three segments.

Which Operating Segments Are Separately Reportable Under the Asset Test