What Is the Reasonable Maximum Number of an Entity's Reportable

question 10

Multiple Choice

What is the reasonable maximum number of an entity's reportable segments according to the additional guidance provided in AASB 8?

• A) 8;
• B) 10;
• C) 12;
• D) There is no maximum number provided in the guidance.

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Definitions:

Receivables

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Sales

The total amount of goods or services sold by a business within a certain period.

Total Assets Turnover Ratio

A financial metric that measures a company's effectiveness in using its assets to generate sales, calculated as sales divided by total assets.

Assets

Resources owned by a company that have economic value and can be converted into cash.