The Major Argument Against Segment Disclosure Is That

question 22

Multiple Choice

The major argument against segment disclosure is that

• A) data collection costs are high
• B) that competitors will take advantage of the data
• C) earnings conservatism will be affected
• D) in some cases it may be inappropriate and misleading

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Definitions:

Legal Taxable Entity

An organization or individual recognized by law as a unit that is required to pay taxes on income, assets, or transactions.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and it has its own rights, privileges, and liabilities independent of the owners.

Modular Homebuilder

A company that specializes in constructing homes that are primarily built off-site, in sections, and then assembled on-site.

Manufacturing Business

A company engaged in the processing of raw materials into finished products through the use of labor, machinery, and equipment.