Whitley Corporation identified four operating segments: Automotive,Electrical,Lawn Equipment,and Sporting Goods.Automotive met the revenue test and the profit or loss test.Electrical met all three tests.Lawn Equipment met only the asset test.Sporting Goods did not meet any of the three tests.Which of these segments must be disclosed separately?

Question

Quizplus · Accepted Answer

According to the segment disclosure rules, a segment must be disclosed separately if it meets any of the three tests. In this case, Automotive and Electrical met the tests, but Lawn Equipment only met the asset test and Sporting Goods did not meet any of the tests. Therefore, Lawn Equipment does not need to be disclosed separately and can be aggregated with other segments. Automotive and Electrical must be disclosed separately, and Sporting Goods may or may not be disclosed depending on management's discretion. Option C correctly identifies the segment that needs to be disclosed separately.

Whitley Corporation Identified Four Operating Segments: Automotive,Electrical,Lawn Equipment,and Sporting Goods