Question

Q5: Company Y has a number of business segments. The Identifiable Assets for four of Company Y’s segments is given below:

Salmyia $1,200,000

Marina $1,300,000

Mischref $2,300,000

Fintas $2,000,000

Total Identifiable Assets for Company Y are $15,000,000

Based on the above information only, which of the above segments are classified as reportable segments?

Select one:

a. Salmyia only

b. Both Mischref and Fintas

c. All four segments

d. None of these answers

e. None of the four segments

Answer 1

Ans:b. Both Mischref and Fintas is Correct Answer

Explanation:

segments are classified as reportable segments=If the individual segments assets exceeds or equals  the 10% of Total Identifiable Assets for Company Y

Total Identifiable Assets for Company Y are $15,000,000*10%=$1,500,000

If any Segment exceeds $1,500,000 then reportable segments

Hence , Mischref and Fintas are only exceeds the limit

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