The Following Information Relates to Gimli Ltd and Its Elrond

question 46

Multiple Choice

The following information relates to Gimli Ltd and its Elrond segment.

In accordance with AASB 8 "Operating Segment", in which years is the Elrond segment a reportable segment?

• A) 2011, 2012 and 2013;
• B) 2012, 2013 and 2014;
• C) 2012 and 2014;
• D) 2011 and 2015;
• E) Elrond segment in reportable in all the years shown above.

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Definitions:

Effective Annual Interest Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it reflects the total interest that will be paid or earned over a year, taking into account the effect of compounding.

Inventory Turnover Rate

A financial metric measuring how often a company's inventory is sold and replaced over a period.

Sales

The total amount of goods or services sold within a specific time frame, indicating the performance and growth of a business.

Operating Cycle

The duration from the acquisition of supplies for production to the collection of payment from the sale of goods, indicating the company's efficiency in managing its inventory and receivables.