A Major Value of Segment Information for Users Is That

question 34

Multiple Choice

A major value of segment information for users is that

• A) it focuses on issues other than cash flows.
• B) in the United States, GAAP requires firms to disclose segment information by major country.
• C) it provides information to investors that might involve cost of preparation but not cost of competitive advantage.
• D) it allows users who have different information needs to get disaggregated information that might be of use to them.

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Definitions:

Income Stream

A regular flow of money from an investment, property, or other financial assets.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.

Perfect Substitute

Two or more goods that can be used interchangeably with no loss of utility by the consumer.

Consumption

The process or activity of using goods and services, reflecting the end-use of products that directly satisfies human needs or desires.