What Is the Main Objective in Disclosing Segmented Information

question 2

Multiple Choice

What is the main objective in disclosing segmented information?

• A)It provides a broader view of the entire economic entity controlled by the parent.
• B)It provides information to assess the risk of different operating units.
• C)It increases the income of different operating segments.
• D)It reduces the cost of financial reporting.

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Definitions:

Creditworthiness

An assessment of a borrower's ability to repay debts in a timely manner, typically considered by lenders before issuing credit.

Investment Grade

A rating that indicates a bond or other security is considered low risk by rating agencies, making it an attractive investment for conservative investors.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments and the principal.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, often involving equity ownership, debt purchases, or other financial instruments.