An Important Argument for Providing Segmental Information in the Financial

question 25

Multiple Choice

An important argument for providing segmental information in the financial reports is:

• A) It is simpler and easier for users to follow.
• B) Consolidated information is so aggregated that it may disguise poor performance and very good performance among segments of the entity.
• C) The shareholders of the individual companies in the group can use the segment information to assess the performance of their company.
• D) The segments of the entity will be taxed separately on their earnings.
• E) None of the given answers.

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Definitions:

Extraversion

A personality dimension involving energy directed outward, such as excitement seeking, socializing, and talkativeness.

Introversion

A trait in someone's character that revolves around prioritizing personal feelings above outside sources of stimulation.

Extraverts

Individuals characterized by their outgoing, sociable, and energetic behavior.

Introverts

Individuals who prefer solitary activities and get drained by social engagement, as opposed to seeking energizing experiences from external activities.