_____ An entity has four operating segments. For 2006, their measures of profitability are $300,000, $200,000, $(100,000), and $(50,000). In applying the 10% profitability test to determine reportable segments, the 10% is applied to:
A) $(150,000)
B) $ 350,000
C) $ 500,000
D) $ 650,000

Question

Quizplus · Accepted Answer

The 10% profitability test is applied to the total of the absolute values of the profits and losses of all segments, which is $300,000 + $200,000 + $100,000 + $50,000 = $650,000.

_____ an Entity Has Four Operating Segments