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 Outside Sales Intersegment Sales Two $ 271,000 $111,000 201,000 71,000 161,000 41,000 Three Four Totals Five 151,000 $784,000 $ 101,000 Six 81,000 Seven 51,000 Totals $233,000 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.
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 Outside Sales Intersegment Sales Two $ 271,000 $111,000 201,000 71,000 161,000 41,000 Three Four Totals Five 151,000 $784,000 $ 101,000 Six 81,000 Seven 51,000 Totals $233,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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).
Outside
Sales
201,000
161,000
151,000
Intersegment
Sales
$ 111,000
71,000
41,000
31,000
Accounts
One
$ 271,000
Two
Three
Four
Totals
$ 784,000
$ 254,000
Five
Six
$ 101,000
Seven
Totals
$ 233,000
$ 21,000
11,000
21,000
$ 53,000
Which of the following statements is true?
81,000
51,000
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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