Which of the Following Statements Is False Concerning the Number

question 18

Multiple Choice

Which of the following statements is false concerning the number of operating segments that should be disclosed?

• A) At least 75 percent of total company sales made to outsiders should be presented.
• B) Even though an operating segment has been reportable in the past and is of continuing significance, it must meet at least one of the three reporting tests to report separately in the current year.
• C) If the 75 percent rule is not met by the results of applying all three reporting tests, additional segments must be disclosed separately despite their failure to satisfy even one of the three quantitative thresholds.
• D) If an operating segment qualifies for disclosure in the current year, prior period segment data presented for comparative purposes must be restated to reflect the newly reportable segment as a separate segment.
• E) The practical limit to the number of operating segments is 10.

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Definitions:

Individual Liability

Refers to the personal legal responsibility of an individual for actions or omissions that may result in harm or damages.

Partner Withdrawal

The process or act of a partner exiting from a partnership, impacting the partnership's operation and financial status.

Partnership

A legitimate business arrangement where two or more participants collaborate in running the enterprise and splitting the income.

Fiduciary Duties

Obligations that require a party, typically in a trustee or representative role, to act in the best interests of another party.