Which of the following statements is true?
A) In determining reportable segments, two tests are applied and both must be met.
B) In determining reportable segments, three tests are applied and all three must be met.
C) In determining reportable segments, two tests are applied and only one must be met.
D) In determining reportable segments, three tests are applied and only one must be met.
E) In determining reportable segments, at least 80% of the revenues from external customers must be reported.

Question

Quizplus · Accepted Answer

In determining reportable segments, three tests are applied: the revenue test, the profit or loss test, and the asset test. Only one of these tests needs to be met for a segment to be considered reportable.

Which of the Following Statements Is True