Question

Which tests must a company use to determine which operating segments require separate disclosure? A) Revenue test and asset test. B) Revenue test, profit or loss test, and asset test. C) Revenue test and profit or loss test. D) Profit or loss test and asset test. E) Revenue test, asset test, and liability test.

Answer 1

Answer:Revenue Test, profit or loss test and asset test are tests to determine which operating segments require separate disclosure.

Explanation:Revenue Tests is the rough determination of the price elasticity of demand for a company's product, this is done by evaluating changes in income that may arise from price change.

Profit or loss test determines if the business is profitable or not.

An asset test is the company's ability to meet it's short term legal responsibilities.