When an Intermediate Manufacturer Moves into Final Assembly,it Is Pursuing

question 38

Multiple Choice

When an intermediate manufacturer moves into final assembly,it is pursuing

• A) backward integration.
• B) forward integration.
• C) taper integration.
• D) related diversification.
• E) unrelated diversification.

Recognize the considerations for reporting on geographical segments.

Acknowledge the significance of reconciling segment information with entity financials.

Understand the criteria and implications of relying on a single major customer.

Recognize the ethical considerations and potential for manipulation in segment reporting.

---

Definitions:

Quick Assets

Highly liquid assets that can be quickly converted into cash without losing value, often including cash, marketable securities, and accounts receivable.

Current Assets

Items of value that are likely to be turned into cash, sold off, or used up within the span of one year or the length of the operating cycle, whichever period extends further.

Current Liabilities

Obligations that a company needs to pay off within one year or within its operating cycle, whichever is longer.

Credit Terms

Conditions under which a seller extends credit to a buyer, detailing the repayment time frame and any interest or penalties for late payment.