Which operating segments are separately reportable under the revenues test?
A) DVDs only.
B) DVDs and MP3s.
C) DVDs and VCRs.
D) VCRs and MP3s.
E) DVDs, VCRs, and MP3s.

Question

Quizplus · Accepted Answer

Segments that are reportable under the revenues test are those that generate revenues that are 10% or more of the combined revenue of all operating segments. In this scenario, DVDs and MP3s generate revenue that exceeds 10% of the combined revenue, making them separately reportable segments. The other choices do not meet the revenue test criteria.

Which Operating Segments Are Separately Reportable Under the Revenues Test