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Huey, Dewey, and Louie Are the Three Operating Segments of Donald

Question 24

Multiple Choice

Huey, Dewey, and Louie are the three operating segments of Donald Company. Which of the following statements is correct based on the information provided below? ln$000 Huey  Dewey  Louie  Total  operating  segments  Other  business  units  Total  Donald  Company  Revenue 2751304108152951110 Profit/loss 1003018531560375 Assets 35521575013203101630\begin{array}{|l|r|r|r|r|r|r|}\hline\ln \$ 000&\text { Huey }&\text { Dewey }&\text { Louie }&\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 { Donald } \\\text { Company }\end{array} \\\hline \text { Revenue } & 275 & 130 & 410 & 815 & 295 & 1110 \\\hline \text { Profit/loss } & 100 & 30 & 185 & 315 & 60 & 375 \\\hline \text { Assets } & 355 & 215 & 750 & 1320 & 310 & 1630 \\\hline\end{array}


A) Huey, Dewey, and Louie are reportable segments of Donald Company.
B) Only Dewey and Louie should be disclosed as reportable segments.
C) Dewey is not a reportable segment as it does not satisfy the profit/loss quantitative threshold.
D) Donald Company needs to identify another reportable segment from 'other business units' component.

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