A Major Difference Between U

question 24

Multiple Choice

A major difference between U.S. segment disclosures and those of other countries is that

• A) U.S. companies tend to disclose more segments on average than do U.K. companies.
• B) U.K. companies have several different sources of standards, whereas U.S. companies only have to worry about the FASB.
• C) U.K. company law gives significant direction to companies on establishing segments, whereas the FASB gives no discretion to management on the establishment of segments.
• D) U.S. companies have to report geographic sales by source and destination, whereas British companies are only allowed to report geographic sales by destination.

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Definitions:

Accumulated Depreciation

The total depreciation of a tangible asset up to a specific date, reducing its book value.

Other Income/Expense

Gains or losses from non-operational activities, distinct from the core business operations’ revenues and expenses.

Gain

The profit realized from the sale of assets or investments for more than their original purchase price.

Sale of Equipment

A transaction involving the disposal of machinery or other equipment used in business operations, typically recorded as a gain or loss.