Which of the Following Is True Concerning Segment Disclosures

question 20

Multiple Choice

Which of the following is true concerning segment disclosures?

• A) The European Union requires sales but not profit data by segments.
• B) Forecasts based on consolidated data are more accurate than those based on segmented data due to intercompany transfers.
• C) The U.S. requires extensive social disclosures of its segmented data.
• D) The British require segment sales based on source but not destination.

---

Definitions:

Conservative Shift

A psychological theory indicating that groups tend to make decisions that are more risk-averse or conservative than individual members would make alone.

Group Decision Making

The process by which a group of individuals collaboratively makes a choice from the alternatives.

Company Data

Information related to the business operations, financials, and performance metrics of a company.

Scientific Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.