FASB 131 (ASC 280)uses A(n)______ Approach to the Definition of Segments

question 3

Multiple Choice

FASB 131 (ASC 280) uses a(n) ______ approach to the definition of segments.

• A)line of business
• B)entity approach
• C)portfolio
• D)management

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Definitions:

Warranty Rights

The entitlements a buyer has under a warranty, including repair, replacement, or refund for products that fail to meet the specified standards.

Privity

The direct relationship between parties to a contract, conferring rights and obligations.

Warranties

Legal guarantees provided by the seller regarding the quality or performance of a product or service.

Implied Warranty

An implied warranty is a legal term for the assurances that are not explicitly stated but that the law infers that goods are fit for their intended purpose.