The Aim of Segment Reporting Is to Provide Entity Stakeholders

question 23

Multiple Choice

The aim of segment reporting is to provide entity stakeholders with the information required to:

• A) have a better understanding of the entity's past performance.
• B) make a more informed assessment of the entity's risks and returns.
• C) make more informed judgments about the performance and position of the entity as a whole.
• D) all of the above.

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Definitions:

Negligence

Behavior that creates an unreasonable risk of harm to others.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Duty of Accounting

An agent’s obligation to keep an accurate account of the transactions of money and property made on behalf of the principal.

Agent

A representative authorized to act on behalf of another person or organization, especially in business or legal matters.