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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,
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 $1,010,000($780,000+$230,000) from sales to outside customers. In addition, the segments had $300,000 in intersegment sales ($250,000+$50,000). Which of the following statements is true? a. A sufficient number of segments is being reported because those segments have $1,030,000 in total sales of a total of $1,310,000 for the company as a whole. b. Not enough segments are being reported because those segments have $780,000 in outside sales of a total of $1,010,000 for the company as a whole. c. Not enough segments are being reported because those segments have $1,030,000 in total revenues of a total of $1,310,000 for the company as a whole. d. A sufficient number of segments is being reported because those segments have $780,000 in outside sales of a total of $1,010,000 for the company as a whole
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