Question

Alpha Co. identified the following six operating segments:

Segments

   L M N O P Q

Sales to outside parties $514 $309 $121 $99 $1,811 $812

Intersegment revenue    109 0 16 302 16 91

Operating expense 565 453 373 98 818 1,004

Assets 520 940 600 240 620 316

Which operating segments must be disclosed based only on the revenue test and the asset test?

Group of answer choices

L,M,N,P

L,M,O,P

L,M,N,O,P,Q

M,N,O,P

L,M,N,P,Q

Answer 1

SOLUTION

L,M,N,O,P,Q ARE THE REPORTABLE

MORE THAN 10% IS A REPORTABLE SEGMENT

SO IN SALES TEST L,O,P,Q ARE REPORTABLE

AND IN ASSETS TEST L,M,N,P ARE REPORTABLE

	SEGMENT	EXTERNAL SALE	INTERSEGMENT SALE	TOTAL SALE	% OF TOTAL SALE	ASSET	% OF TOTAL ASSETS
	L	514	109	623	15%	520	12%
	M	309	0	309	7%	940	22%
	N	121	16	137	3%	600	14%
	O	99	302	401	10%	240	6%
	P	1811	16	1827	44%	620	15%
	Q	812	91	903	22%	316	8%
		3666	534	4200		4200