8. Assume that an enterprise has 10 operating segments. Of these, five segments qualify as reportable segments

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8. Assume that an enterprise has 10 operating segments. Of these, five segments qualify as reportable segments by passing one of the 10 percent tests. However, their combined revenues from sales to unaffiliated customers total only 70 percent of the combined unaffiliated revenues from all operating segments.

Should the remaining five operating segments be aggregated and shown as an “other segments” category?

Explain.

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Advanced Accounting

ISBN: 9781292214597

13th Global Edition

Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith

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