Which of the Following Statements Regarding Requirements for Segment Disclosures

question 34

Multiple Choice

Which of the following statements regarding requirements for segment disclosures is most accurate?

• A) Segment disclosures must include most of the items found in financial statements for the entire enterprise.
• B) Segment reporting is generally applied in a similar fashion in various companies,since the requirement are detailed and inflexible.
• C) Segment reporting requirements are so flexible that firms can often resist disclosing information they would prefer to keep confidential.
• D) Segment reporting is not required for any entities;the standards are concerned with determination of segment information if a company wishes to disclose it.

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Definitions:

Instrument

A tool or device used for a specific purpose, often referring to musical instruments or legal documents.

Maker

Typically refers to the individual or entity that creates or executes a financial instrument, like a check or promissory note, thereby committing to the terms outlined therein.

Overdue

When an instrument is not paid when due or at maturity.

Reasonable Period

An amount of time regarded as fairly appropriate under the circumstances, considering what a rational person would deem sufficient.