Question:Determine which segments are considered to be reportable and whether the reportable segments represent a significant portion of entity consolidated revenues. The Chief Operating Decision Maker of a publicly traded company has defined segments around fourproduct/service groups. Various revenues, expenses and assets associated with the segments are asfollows:Segment ASegment BSegment CSegment DConsolidatedTotals15,000,000 69,000,000Revenue (External)Revenue (Internal)Expenses57,000,00044,000,000230,000,0005,400,0003,700,00069,000,00013,000,00083,000,00049,000,000223,000,000Assets25,000,0003,200,000 35,000,00019,000,00095,000,000

Calculation of total reported profits: Total reported profits = Segment B = $2,000,000 Calculation…

Answered: the reportable segments represent a…

Business

Accounting

the reportable segments represent a significant portion of entity consolidated revenues.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Question:

Determine which segments are considered to be reportable and whether the reportable segments represent a significant portion of entity consolidated revenues.

The Chief Operating Decision Maker of a publicly traded company has defined segments around four
product/service groups. Various revenues, expenses and assets associated with the segments are as
follows:
Segment A
Segment B
Segment C
Segment D
Consolidated
Totals
15,000,000 69,000,000
Revenue (External)
Revenue (Internal)
Expenses
57,000,000
44,000,000
230,000,000
5,400,000
3,700,000
69,000,000
13,000,000
83,000,000
49,000,000
223,000,000
Assets
25,000,000
3,200,000 35,000,000
19,000,000
95,000,000

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