Which of the following is not a limitation on the number of reportable segments?
A)Consistency, i.e., the number of reportable segments this period, must be the same as last period.
B)Usually the number of segments should not exceed 10.
C)At least 75% of the combined revenue of sales to unaffiliated firms should be traceable to reportable segments.
D)None of the above is a limitation.

Question

Which of the following is not a limitation on the number of reportable segments?
A)​Consistency, i.e., the number of reportable segments this period, must be the same as last period.
B)​Usually the number of segments should not exceed 10.
C)​At least 75% of the combined revenue of sales to unaffiliated firms should be traceable to reportable segments.
D)​None of the above is a limitation.

Quizplus · Accepted Answer

The requirement for consistency in the number of reportable segments from one period to the next is not a recognized limitation on the number of reportable segments. The other options (B and C) are actual considerations or guidelines in determining reportable segments, but there is no rule that mandates the number of segments to remain consistent across reporting periods.

Which of the Following Is Not a Limitation on the Number