The following information on sales is available for the company's three operating segments: $$\begin{array} { | c | r | r | r | }
\hline \text { Segment } & \text { International Sales } & \text { External Sales } & \text { Total Sales } \
\hline \mathrm { A } & \$ 60,000 & \$ 300,000 & \$ 360,000 \
\hline \mathrm { B } & 200,000 & 10,000 & 210,000 \
\hline \mathrm { C } & & \underline { 1,500,000 } & \underline { 1,500,000 } \
\hline & \$ 260,000 & \$ 1,810,000 & \$ 2,070,000 \
\hline
\end{array}$$ Which of the operating segments must be reported separately?
A)Only Segment C
B)Only Segments B and C
C)Only Segments A and C
D)Segments A, B, and C

Question

The following information on sales is available for the company's three operating segments: $$\begin{array} { | c | r | r | r | } 
\hline \text { Segment } & \text { International Sales } & \text { External Sales } & \text { Total Sales } \
\hline \mathrm { A } & \$ 60,000 & \$ 300,000 & \$ 360,000 \
\hline \mathrm { B } & 200,000 & 10,000 & 210,000 \
\hline \mathrm { C } & & \underline { 1,500,000 } & \underline { 1,500,000 } \
\hline & \$ 260,000 & \$ 1,810,000 & \$ 2,070,000 \
\hline
\end{array}$$ Which of the operating segments must be reported separately?
A)Only Segment C
B)Only Segments B and C
C)Only Segments A and C
D)Segments A, B, and C

Quizplus · Accepted Answer

All segments must be reported separately if they meet the 10% threshold of total sales, which is $207,000. Segment A ($360,000), Segment B ($210,000), and Segment C ($1,500,000) all exceed this threshold.

The Following Information on Sales Is Available for the Company's