Assuming the three business units below are operating segments and all revenue earned are from external customers, in which of the following scenarios does Colourband Ltd need to identify another reportable segment to be disclosed?
$\begin{array}{|c|r|r|r|r|r|r|}
\hline \begin{array}{c}
\text { Revenue } \
\text { in } \mathbf{\$ 0 0 0}
\end{array} & \text { Red } & {\text { Blue }} & \text { Green } &{\begin{array}{c}
\text { Total } \
\text { operating } \
\text { segments }
\end{array}} & {\begin{array}{c}
\text { Other } \
\text { business } \
\text { units }
\end{array}} &{\begin{array}{c}
\text { Total } \
\text { Colourband } \
\text { Ltd }
\end{array}} \
\hline \text { I. } & 75 & 160 & 320 & 555 & 250 & 805 \
\hline \text { II. } & 110 & 140 & 275 & 525 & 175 & 700 \
\hline \text { III. } & 230 & 250 & 375 & 855 & 315 & 1170 \
\hline
\end{array}$
A) I only.
B) I and II.
C) I and III.
D) II and III.

Question

Quizplus · Accepted Answer

In scenario I, the revenue from the other business units exceeds 10% of the total revenue of Colourband Ltd, so another reportable segment needs to be identified. In scenario III, the revenue from the other business units exceeds 10% of the total revenue of Colourband Ltd, so another reportable segment needs to be identified.

Assuming the Three Business Units Below Are Operating Segments and All