Which of the Following Is Not Considered When Determining Whether

question 14

Multiple Choice

Which of the following is not considered when determining whether an operating segment qualifies as a reportable segment?

• A)​revenue of the segment
• B)​the assets of the segment
• C)​the shareholders' equity of the segment
• D)​the absolute amount of its profit or loss

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Definitions:

Performance-Based Stock Option Plans

Incentive programs that grant options to employees as rewards for achieving specific performance targets.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a predetermined number of common shares, often at a set price.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, usually with fixed dividends.

Common Stock

Shares of ownership in a corporation that entitle holders to vote at shareholder meetings and receive dividends.