Chigua Company has seven operating segments, but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,017,000 ($784,000+ $233,000) from sales to outside customers. In addition, the segments had $307,000 in intersegment sales ($254,000+ $53,000). Accounts One Two Three Outside Sales $ 271,000 201,000 Intersegment Sales $111,000 71,000 Four Totals Five Six Seven 161,000 151,000 $784,000 41,000 31,000 $ 254,000 $ 21,000 11,000 21,000 $ 101,000 81,000 51,000 $ 53,000 Totals $233,000 Which of the following statements is true? Multiple Choice O A sufficient number of segments is being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole. A sufficient number of segments is being reported because those segments have $1,038,000 in total sales of a total of $1,324,000 for the company as a whole. Not enough segments are being reported because those segments have $1,038,000 in total revenues of a total of $1,324,000 for the company as a whole. Not enough segments are being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole.
Chigua Company has seven operating segments, but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,017,000 ($784,000+ $233,000) from sales to outside customers. In addition, the segments had $307,000 in intersegment sales ($254,000+ $53,000). Accounts One Two Three Outside Sales $ 271,000 201,000 Intersegment Sales $111,000 71,000 Four Totals Five Six Seven 161,000 151,000 $784,000 41,000 31,000 $ 254,000 $ 21,000 11,000 21,000 $ 101,000 81,000 51,000 $ 53,000 Totals $233,000 Which of the following statements is true? Multiple Choice O A sufficient number of segments is being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole. A sufficient number of segments is being reported because those segments have $1,038,000 in total sales of a total of $1,324,000 for the company as a whole. Not enough segments are being reported because those segments have $1,038,000 in total revenues of a total of $1,324,000 for the company as a whole. Not enough segments are being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 800.
Transcribed Image Text:Chigua Company has seven operating segments, but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,017,000 ($784,000+ $233,000) from sales to outside customers. In addition, the segments had $307,000 in
intersegment sales ($254,000+ $53,000).
Accounts
One
Two
Three
Four
Outside
Sales
$ 271,000
201,000
Intersegment
Sales
$ 111,000
71,000
Totals
161,000
151,000
$784,000
Five
Six
Seven
$ 101,000
81,000
Totals
51,000
$233,000
41,000
31,000
$ 254,000
$ 21,000
11,000
21,000
$ 53,000
Which of the following statements is true?
Multiple Choice
○ A sufficient number of segments is being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole.
A sufficient number of segments is being reported because those segments have $1,038,000 in total sales of a total of $1,324,000 for the company as a whole.
○ Not enough segments are being reported because those segments have $1,038,000 in total revenues of a total of $1,324,000 for the company as a whole.
Not enough segments are being reported because those segments have $784,000 in outside sales of a total of $1,017,000 for the company as a whole.
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