A segment is considered to be significant if its:
A) reported profit is at least 10% of the combined profit of all operating segments.
B) reported profit (loss) is at least 10% of the combined reported profit of all operating segments not reporting a loss.
C) reported profit (loss) is at least 10% of the combined reported loss of all operating segments that reported a loss.
D) reported profit (loss) is at least 10% of the combined reported profit of all operating segments not reporting a loss; and reported profit (loss) is at least 10% of the combined reported loss of all operating segments that reported a loss.

Question

Quizplus · Accepted Answer

A segment is considered significant if its reported profit or loss meets either of the thresholds in option D: it must be at least 10% of the combined reported profit of all segments not reporting a loss, and/or at least 10% of the combined reported loss of all segments that reported a loss. This dual criterion ensures that both profitable and loss-making segments of significance are identified based on their relative size to the total profits or losses of the company's segments.

A Segment Is Considered to Be Significant If Its