JNG Corp has 4 segments, the details of which are shown below. All figures are in thousands of dollars. $\begin{array}{|l|r|r|r|}
\hline \text { Segment } & \text { Revenues } & \text { Profits } & \text { Assets } \
\hline \mathrm{A} & \$ 12 & \$ 6 & \$ 40 \
\hline \mathrm{B} & \$ 60 & \$ 2 & \$ 80 \
\hline \mathrm{C} & \$ 35 & \$ 10 & \$ 80 \
\hline \mathrm{D} & \$ 200 & \$ 80 & \$ 20\\hline
\end{array}$ Using only the Revenue test, which of the following segment(s) would be reportable?
A) A
B) A, B, and D
C) B, C, and D
D) C and D

Question

JNG Corp has 4 segments, the details of which are shown below. All figures are in thousands of dollars. $\begin{array}{|l|r|r|r|}
\hline \text { Segment } & \text { Revenues } & \text { Profits } & \text { Assets } \
\hline \mathrm{A} & \$ 12 & \$ 6 & \$ 40 \
\hline \mathrm{B} & \$ 60 & \$ 2 & \$ 80 \
\hline \mathrm{C} & \$ 35 & \$ 10 & \$ 80 \
\hline \mathrm{D} & \$ 200 & \$ 80 & \$ 20\\hline 
\end{array}$ Using only the Revenue test, which of the following segment(s) would be reportable?
A) A
B) A, B, and D
C) B, C, and D
D) C and D

Quizplus · Accepted Answer

The Revenue test for reportability often requires a segment's revenue to be 10% or more of the combined revenue of all segments. The combined revenue is $12k + $60k + $35k + $200k = $307k. 10% of $307k is $30.7k. Segments B ($60k), C ($35k), and D ($200k) each have revenues exceeding this threshold, making them reportable under the Revenue test.

JNG Corp Has 4 Segments, the Details of Which Are