Problem

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

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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Solutions For Problems in Chapter 15