In Determining If Two Operating Segments May Be Combined into One

question 31

Multiple Choice

In determining if two operating segments may be combined into one, which of the following factors should be considered?

• A)​similarities regarding profit margins
• B)​whether the nature of the products and services is similar
• C)​whether there is a similar amount of intracompany sales
• D)whether there is a similar number of employees​

Calculate changes in owner's capital and understand factors affecting those changes.

Record transactions appropriately in journals and ledgers.

Understand the concept of debits and credits and the double-entry system.

Calculate and analyze the debt ratio to assess financial risk and stability.

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a product or service, often set by government to prevent prices from reaching excessively high levels.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a state of balance.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often leading to a decrease in prices.

Government Programs

Initiatives launched by the government aimed at achieving specific policy outcomes, ranging from social welfare to economic stimulation.