Edwards and Smith (1996)found That One of the Main Reasons

question 39

Multiple Choice

Edwards and Smith (1996) found that one of the main reasons companies resisted segment disclosures is:

• A) There are unreasonable costs to prepare disclosures.
• B) Investors were not interested in additional information.
• C) The financial report had sufficient information for users.
• D) It means a competitive disadvantage.

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Definitions:

Perpetual Inventory System

A method of inventory management that records real-time transactions of goods, maintaining continuous inventory balance.

Journal Entries

The recordation of financial transactions in a journal in such a way that each transaction is accompanied by a brief explanatory note or description.

Perpetual Inventory System

An inventory management method that records real-time transactions of received and sold inventory.

Merchandise Inventory

Goods or products that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.