CA Intermediate Paper 1

AS 17 - Segment Reporting MCQ

Chapter 6 • 5 Questions from ICAI Study Material

Questions

5

Est. Time

8 min

Source

ICAI Book

Sample Questions: AS 17 - Segment Reporting

Preview 3 of 5 questions from Chapter 6

1. As per AS 17, reportable segments are those whose total revenue from external sales and inter-segment sales is

A) 10% or more of the total revenue of all segments ✓
B) 10% or more of the total revenue of all external segments
C) 12% or more of the total revenue of all segments
D) 12% or more of the total revenue of all external segments

2. Which of the following statements is correct?

A) Management has a discretion to include a segment as a reportable segment even if it passes the 10% materiality test.
B) Management has a discretion to include any segment as a reportable segment if it fails the 12% materiality test.
C) It is mandatory for the management to include the segment as a reportable segment if it passes the 10% materiality test. ✓
D) It is not mandatory for the management to include the segment as a reportable segment if it passes the 10% materiality test.

3. Which of the following statements is correct?

A) The overall test of 75% considers only external revenue to compute the threshold limit. ✓
B) The overall test of 75% considers only internal revenue to compute the threshold limit.
C) The overall test of 75% considers both internal and external revenue to compute the threshold limit.
D) It is management choice whether they want to include both external and internal revenue for computing threshold limit.