In General,GAAP Encourages the Identification of Reportable Segments Based on the Following

question 19

Multiple Choice

In general,GAAP encourages the identification of reportable segments based on the following:

• A)Reported segments must account for at least 75% of all external and inter-segment sales.
• B)Reported segments must ideally account for at least 75% of all sales,unless there are many smaller divisions and separate reporting would create less clarity in reporting.
• C)If there are more than 10 reportable segments,the company should consider additional aggregation of their segments.
• D)Reported segments must account for 100% of the external sales,but only 75% of external and inter-segment sales.

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Definitions:

Movement Along

Refers to a change in the quantity demanded or supplied of a good, due to a change in its price, represented graphically as a movement along a demand or supply curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at those prices.

Supply of Eggs

The total quantity of eggs that producers are willing and able to sell at a given price level.

Substitutes

Goods or services that can be used in place of each other, satisfying the same needs or desires, and thus competing in the same market.