_____ An entity that operates in several industries has (a) external sales of $40,000,000, (b) intrasegment sales of $3,000,000, and (c) intersegment sales of $7,000,000. In performing the 10% of revenues test to determine reportable segments, the 10% is applied to
A) $3,000,000
B) $40,000,000
C) $43,000,000
D) $47,000,000
E) $50,000,000

Question

Quizplus · Accepted Answer

The 10% revenue test for determining reportable segments is applied to the total revenue, which includes external sales and intersegment sales. Therefore, the total revenue is $40,000,000 (external) + $7,000,000 (intersegment) = $47,000,000.

_____ an Entity That Operates in Several Industries Has (A)