Which of the Following Statements Is True According to U

question 54

Multiple Choice

Which of the following statements is true according to U.S. GAAP regarding operating segment disclosure?

• A) The measurement of segment profit and loss disclosure need not be similar to the measurement provided to the chief operating decision maker.
• B) Segment information does not have to be in accordance with generally accepted accounting principles.
• C) Disclosure of a major customer's identity is required.
• D) Geographic area information must be disclosed in interim financial statements.
• E) Immaterial items must be disclosed.

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Definitions:

Working Capital Management

The management of a company's short-term assets and liabilities to ensure it has adequate funds to continue its operations and avoid financial distress.

Current Assets

Current assets are assets that a company expects to convert into cash, sell, or consume within one year or within its operating cycle, whichever is longer.

Current Liabilities

Financial obligations of a business that are due and payable within a year.

Collection Process

The method by which a company pursues payment on outstanding invoices from customers, including sending reminders, making calls, or taking legal action.