Note: This Is a Kaplan CPA Review Question

question 45

Multiple Choice

Note: This is a Kaplan CPA Review Question
The key to reporting accounting information by segments is determining what constitutes a segment. Of the following, which is not a method of determining a reportable segment?

• A) Operating profit
• B) Revenues
• C) Number of employees
• D) Combined identifiable assets

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Definitions:

Covariances

A measure of the degree to which two variables change with respect to each other, indicating the direction of their linear relationship.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Descriptive Statistics

Statistical procedures that summarize, present, and describe data sets in terms of properties like mean, median, and variance.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.