Segment Disclosure Should Not Be Expensive Because of

question 13

Multiple Choice

Segment disclosure should not be expensive because of

• A) worldwide business activity
• B) stock market analysts
• C) resultant lower leverage
• D) computer systems

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Definitions:

Cash Payback Period

The time period required for the returns from an investment to repay the initial capital outlay.

Annual Net Cash Flows

This term refers to the amount of money that flows in and out of a business over a year after all expenses have been accounted for.

Expected Total Cash Flows

An estimation of all cash inflows and outflows associated with an investment over its expected life, used to gauge its profitability.

Average Rate of Return

A financial ratio indicating the average annual return earned through an investment over its lifetime, expressed as a percentage of the initial investment cost.