Homework

ACC-690 Module Three Quiz

Problem 5

Dean hardware, INC, is comprise of five operating segments. Information about each of these segments is as follows(in thousands):

Rakes Pails Shovels Hardware Accessories

Sales to outsiders $94 $506 $44 $122 $28

Intersegment transfers 4 26 14 30 24

Interest revenue -outsiders 2 - 4 8 -

Interest revenue - intersegment - 6 - - 22

Operating expenses -outsiders 116 414 40 102 26

Operating expenses-intersegment 2 20 6 16 22

Interest expense - 12 - 2 22

Income taxes (4) 10 4 6 2

Tangible assets 18 116 12 12 8

Intangible assets - - 4 8 6

Intersegment receivables 8 6 - - -

Which operating segments are reportable under the profit or loss test?

O Rakes, Pails, and Shovels.

O Rakes, Pails, Shovels, and Hardware.

O Rakes,Pails, and Hardware.

O Rakes, Pails, Shovels, Hardware, and Accessories.

O Pails and Hardware