For internal decision-making purposes, Falcon Corporation identifies its industry segments by geographical area. For 2014, the total revenues of each segment are provided below. There are no intersegment revenues.
Required:
1. Which operating segments will be considered reporting segments based on the revenue test?
2. What is the test value for determining whether a sufficient number of segments are reported?
3. What will be the minimum number of segments that must be reported?

Question

For internal decision-making purposes, Falcon Corporation identifies its industry segments by geographical area. For 2014, the total revenues of each segment are provided below. There are no intersegment revenues.
  Required:
1. Which operating segments will be considered reporting segments based on the revenue test?
2. What is the test value for determining whether a sufficient number of segments are reported?
3. What will be the minimum number of segments that must be reported?

Quizplus · Accepted Answer

The Answer of For internal decision-making purposes, Falcon Corporation identifies its industry segments by geographical area. For 2014, the total revenues of each segment are provided below. There are no intersegment revenues.
  Required:
1. Which operating segments will be considered reporting segments based on the revenue test?
2. What is the test value for determining whether a sufficient number of segments are reported?
3. What will be the minimum number of segments that must be reported?

For Internal Decision-Making Purposes, Falcon Corporation Identifies Its Industry Segments