A Business Segment Is Defined by AASB 8 As

question 54

Multiple Choice

A business segment is defined by AASB 8 as:

• A) A component of an entity that is of separable and identifiable interest to a section of stakeholders of the entity.
• B) A distinguishable component of an entity and that component is engaged in providing an individual product or service or group of related products or services and is subject to risks and returns that are different from those of other distinguishable components of the entity.
• C) An identifiable component of an entity that is engaged in providing an individual product or service to other entities within the group and is subject to special risks and returns as a result of relying on other components of the entity.
• D) An identifiable component of an entity based on functional relationships with suppliers or customers or financiers established over a period of time.
• E) None of the given answers.

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Definitions:

Monetary Policy

Actions undertaken by a central bank, such as the Federal Reserve, to control the money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for setting national monetary policy and interest rates.

Reserve Requirement

The minimum amount of deposits that a bank must hold in reserve and not lend out, which is set by the central bank as a means to control the money supply.

Open-Market Sales

Transactions where central banks sell securities in the open market to control the supply of money.