What Is the Minimum Amount of Assets an Operating Segment

question 39

Multiple Choice

What is the minimum amount of assets an operating segment must have to be considered a reportable segment?

• A) $ 1,400,000.
• B) $ 2,500,000.
• C) $ 4,100,000.
• D) $ 5,000,000.
• E) $25,000,000.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Discounted Cash Flow (DCF) Analysis

A financial valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Discount Factor

A multiplier used in discounted cash flow analysis to present value future cash flows.

Discount Rate

In finance, the interest rate used to discount future cash flows to their present value, often reflecting the risk or time value of money.