Which of the Following Is Not a Limitation on the Number

question 40

Multiple Choice

Which of the following is not a limitation on the number of reportable segments?

• A)​Consistency, i.e., the number of reportable segments this period, must be the same as last period.
• B)​Usually the number of segments should not exceed 10.
• C)​At least 75% of the combined revenue of sales to unaffiliated firms should be traceable to reportable segments.
• D)​None of the above is a limitation.

---

Definitions:

Carrying Value

The book value of an asset or liability, reflecting its original cost adjusted for factors such as depreciation or amortization.

Carrying Value

The net amount at which an asset or liability is reported in the financial statements, factoring in depreciation, amortization, and impairment charges.

Unamortized Discount

The portion of a bond's issue price that is below its face value and has not yet been expensed as interest over the life of the bond.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, including the cost of servicing or carrying debt.