Statement 1: A research and development function could qualify as an operating segment Statement 2: When applying the 75% revenue sufficiency test, the next largest operating segment shall always be selected. Statement 3: Segment data may be aggregated if majority of the aggregation criteria are met. Statement 4: Entity-wide disclosures are required by publicly held companies with more than one reportable segment.
Statement 1: A research and development function could qualify as an operating segment Statement 2: When applying the 75% revenue sufficiency test, the next largest operating segment shall always be selected. Statement 3: Segment data may be aggregated if majority of the aggregation criteria are met. Statement 4: Entity-wide disclosures are required by publicly held companies with more than one reportable segment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: A research and development function could qualify as an operating segment
Statement 2: When applying the 75% revenue sufficiency test, the next largest operating segment shall always be selected.
Statement 3: Segment data may be aggregated if majority of the aggregation criteria are met.
Statement 4: Entity-wide disclosures are required by publicly held companies with more than one reportable segment.
a.
Only statement 1 is true
b.
Only statement 3 is untrue
c.
Only statement 4 is true
d.
All statements are untrue
e.
Only statement 2 is untrue
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