Which of the following tests may be used to determine if an industry segment of an enterprise is a reportable segment under FASB Statement No. 131?
A) Its revenue (both from external customers and internal segments) is equal to or greater than 10 percent of total revenue (external and internal).
B) The absolute value of its operating profit is equal to or greater than 10 percent of the total of the operating profit for all segments that reported profits (or the total of the losses for all segments that reported losses).
C) The segment contains 10 percent or more of the combined assets of all operating segments.
D) All of these.

Question

Quizplus · Accepted Answer

All three tests (revenue, operating profit, and assets) are used to determine if an industry segment is a reportable segment under FASB Statement No. 131. Therefore, option D, All of these, is the correct answer.

Which of the Following Tests May Be Used to Determine