The Following Information Is Provided for Gandalf LtD

question 24

Multiple Choice

The following information is provided for Gandalf LtD. The only inter-segment sales within the entity are that the marine transport segment's revenues are 35 per cent from inter-segment sales and the light manufacturing segment has 60 per cent of its sales generated through inter-segment sales.Which segments are reportable according to the guidelines provided in AASB 114?

• A) Business segments: Retailing, marine transport, general insurance; Geographical segments: Australia, US.
• B) Business segments: Retailing, light manufacturing, marine transport, general insurance; Geographical segments: Australia, Europe, US.
• C) Business segments: Retailing, light manufacturing, marine transport, general insurance; Geographical segments: Australia, US.
• D) Business segments: Retailing, light manufacturing, mining, marine transport, general insurance; Geographical segments: Australia, Europe, US.
• E) None of the given answers.

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Definitions:

Future Events

Events that have not yet occurred but are expected to happen and can affect financial outcomes or business operations.

Liquidation Preference

A term used in financial structuring, determining the order in which shareholders are paid in the event of a company’s liquidation.

Alphabetically

In the order of the letters as they appear in the alphabet, typically used for organizing or sorting lists.

Probable Loss

A potential financial loss that is likely to occur in the future, often reflected in financial statements as a provision.