Which operating segments are reportable under the profit or loss test?
A) Rakes, Pails, and Shovels.
B) Rakes, Pails, Shovels, and Hardware.
C) Rakes, Pails, and Hardware.
D) Rakes, Pails, Shovels, Hardware, and Accessories.
E) Pails and Hardware.

Question

Quizplus · Accepted Answer

The profit or loss test requires that segments must have a revenue exceeding 10% of the combined revenue of all segments under consideration. Based on the information given, it can be assumed that Rakes, Pails, and Shovels are reportable segments since they were mentioned, but Hardware and Accessories were not. Therefore, the only option that includes Rakes, Pails, and Hardware is C.

Which Operating Segments Are Reportable Under the Profit or Loss