Friday- Simulations

Question 1

For a reportable segment test, what amounts are included in total sales

Answer 1

• Total sales includes external and intersegment sales

Question 2

What is the reporting sufficiency test?

Answer 2

All sales that qualified as reportable segments must then make up 75% of external sales

Question 3

What happens if reprotable segments do not meet the 75% test

Answer 3

If they do not meet the 75% threshold, we must select an additional segment to add