CAF-6 · Chapter 6 · Question 4 of 15
In addition to the revenue test, a segment is reportable if the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Both A and B above.
Explanation
The 10% profit/loss test compares a segment's profit/loss to the greater of (i) total profit of profitable segments or (ii) total loss of loss-making segments.
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