If a Company Operates in More Than One Significant Segment

question 48

Multiple Choice

If a company operates in more than one significant segment they must disclose segmented information in the notes of the financial statements.What is the purpose of the segmented information?

• A)To aid competitors in understanding the business.
• B)To aid the user in assessing the overall risk of the company.
• C)To aid in the preparation of consolidated financial statements.
• D)To aid the user in assessing the liquidity of the company.

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Definitions:

List

A record of items, names, or tasks to be remembered, considered, or done, arranged in a systematic or sequential order.

Information Processing Model

A cognitive approach to understanding how the human mind transforms sensory information, involving stages such as encoding, storage, and retrieval of information.

Memory

The mental process of encoding, storing, and retrieving information.

Computer

An electronic device designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations.