Reporting by Segments of a Business Is Believed to Have

question 12

Multiple Choice

Reporting by segments of a business is believed to have a number of disadvantages.Which of the following is not likely to be such a disadvantage?

• A) Segment information may not be sufficiently reliable
• B) The costs to a business of providing segment information may exceed the benefits to investors
• C) Providing segment information may assist a business's competitors
• D) Investors invest in a whole company and not in its individual segments

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Definitions:

Nonfloating Drum

A type of drum in machinery or equipment that is fixed in place and does not move or float axially under operation.

Wheel Bearing

Any of several types of bearings that reduce friction at the interface of the axle and the hub.

Rear Axle

The axle located at the rear of a vehicle, transmitting power from the drivetrain to the rear wheels.

Wheel Cylinder

An output cylinder in a drum brake assembly. The wheel cylinder contains pistons that move the brake shoes against the drum when the brakes are applied.