_____ An entity that operates in several industries has (a) external sales of $50,000,000, (b) intrasegment sales of $5,000,000, and (c) intersegment sales of $4,000,000. In performing the 75% test, the 75% is applied to
A) $4,000,000
B) $50,000,000
C) $54,000,000
D) $55,000,000
E) $59,000,000

Question

Quizplus · Accepted Answer

The 75% test is applied to external sales, which in this case amount to $50,000,000. This figure is used to determine if a segment's revenue is significant enough to require separate disclosure in financial statements.

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