The following information pertains to Nixon Corp.and its divisions for the year ended December 31, 2011.

Nixon and all of its divisions are engaged solely in manufacturing operations.Nixon has a reportable segment if that segment's revenue exceeds

Question

The following information pertains to Nixon Corp.and its divisions for the year ended December 31, 2011.

Nixon and all of its divisions are engaged solely in manufacturing operations.Nixon has a reportable segment if that segment's revenue exceeds

Quizplus · Accepted Answer

According to the information provided, Nixon and its divisions are engaged solely in manufacturing operations. Therefore, the revenue test for identifying a reportable segment under US GAAP is met if the segment's revenue is 10% or more of the combined revenue of all operating segments, and the absolute amount of revenue is greater than or equal to $325,000 (which is 10% of Nixon's total revenue of $3,250,000). Therefore, the best choice is B.

The Following Information Pertains to Nixon Corp