Medford Company has seven operating segments but only four (G, H, I, and J) are of significant

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Medford Company has seven operating segments but only four (G, H, I, and J) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $710,000 ($520,000 + $190,000) from outside parties. In addition, the segments had $260,000 in intersegment transfers ($220,000 + $40,000).


Medford Company has seven operating segments but only four (G,


Which of the following statements is true?
a. A sufficient number of segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
b. Not enough segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
c. Not enough segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
d. A sufficient number of segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as awhole.

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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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