Similar Operating Segments May Be Combined If the Segments Have

question 40

Multiple Choice

Similar operating segments may be combined if the segments have similar economic characteristics.Which one of the following is a similar economic characteristic under GAAP?

• A)The segments' management teams
• B)The tax reporting law sections
• C)The distribution method for products or services
• D)The expected rates of return and risk for the segments' productive assets

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Definitions:

Dispositional Factors

Internal attributes such as personality traits, beliefs, and values that influence an individual's behavior and outlook.

Systematic Judgments

Assessments or decisions made based on a thorough, methodical evaluation and analysis of all relevant information and factors.

Snap Judgments

Immediate conclusions or decisions made without thorough consideration, often based on first impressions.

Primacy Judgments

The tendency for the first items presented in a series to be better remembered or more influential than later items.