A Reconciliation of the Revenue, Profit and Loss and Asset

question 6

Multiple Choice

A reconciliation of the revenue, profit and loss and asset amounts presented for reportable segments to the respective consolidated amounts for the entity:

• A)​is not required if all segments are considered reportable.
• B)​is also required for other significant items presented by segments, such as depreciation and amortization.
• C)​is required only if the entity elects to use the management approach to determine its operating segments.
• D)​None of the above is correct.

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Definitions:

Utility Company

A company that provides essential services such as electricity, water, and natural gas to consumers and businesses.

Grocery Store

A retail establishment selling food and other household goods. Often considered an essential service providing everyday necessities to the public.

External Cost

Costs of a transaction or activity that affect parties who did not choose to incur that cost, often referred to in the context of negative externalities in environmental economics.

Postal Worker

An employee of the postal service who is involved in the processing, delivery, or handling of mail.