The Ending Is the Least Important Part of a Presentation

question 85

True/False

The ending is the least important part of a presentation.

Recognize when additional segments must be disclosed to meet the 75 percent external revenue threshold.

Understand the considerations for identifying operating segments based on internal reporting structures.

Identify which operating segments are reportable under various tests such as the asset test, revenue test, and profit or loss test.

Understand the requirements for disclosing information about each operating segment.

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition of repayment with interest.

Interest Tax Benefit

The financial advantage gained through deducting interest payments on debt from taxable income.

MM Model

Modigliani-Miller Model; a theory on capital structure that suggests the market value of a firm is determined by its earning power and the risk of its underlying assets.

Tax-Deductibility

Pertains to expenses that can be subtracted from gross income to reduce the total taxable income, thereby lowering the amount of tax owed.