In 2006 and 2007,each of Putney Company's four operating segments met one of the three quantitative tests for segment reporting.In 2008,Segment B failed to qualify under the prescribed tests because of abnormal financial conditions.The other three segments qualified for reporting.For 2008,Segment B:
A)should be excluded from segment disclosure but referred to in the management letter to shareholders.
B)should be distinctly separated from the other three segments and listed as a "nonqualifying" segment.
C)should be combined with one of the other three segments and reported.
D)should be included in the segment disclosures at the discretion of management.

Question

Quizplus · Accepted Answer

Segment B can be included in the segment disclosures at the discretion of management, as it had previously qualified and may still provide useful information to users of the financial statements.

In 2006 and 2007,each of Putney Company's Four Operating Segments