An entity manufactures suits, clothing, bed linen, and various cotton and manmade fiber products. It has several segments, which are reported internally as

                                

			Segment
Segments	Sales	Profit	assets
Suits	40%	45%	50%
Shirts	30%	35%	33%
Bed linen	15%	10%	7%
Blinds	8%	6%	5%
Cloth	7%	4%	5%
	100%	100%	100%

 

The table represents the percentages of sales, profit, and segment assets that are attributable to the different segments. The entity wants to present bed linen and cloth as a single segment but is wondering whether the information can be aggregated. How will the segmental information be presented in the financial statements? Explain

 

Answer rating: 100% (QA)

ChatGPT To present bed linen and cloth as a single segment we need to assess whether they meet the a... View the full answer