The following segments were identified for an enterprise:

Which of the four segments is a reportable segment?

Question

The following segments were identified for an enterprise:

Which of the four segments is a reportable segment?

Quizplus · Accepted Answer

A reportable segment is one that has a significant impact on the financial performance of the enterprise and is required to be separately reported in the financial statements.

Segment 1, Segment 2, and Segment 3 are potential candidates as reportable segments as they have unique identifiers and may have significant impact on the enterprise's financial performance. Segment 4 has no clear indication of its significance, so it cannot be determined if it is a reportable segment or not.

Therefore, the best choice(s) are options C) 1, 2, and 3 only, as they have the potential to be reportable segments depending on their financial impact.

The Following Segments Were Identified for an Enterprise