Which of the Following Statements Is True According to U

question 104

Multiple Choice

Which of the following statements is true according to U.S. GAAP regarding segment or enterprise-wide disclosure?

• A) A reconciliation of segment assets to consolidated assets is required.
• B) Segment information does not have to be in accordance with generally accepted accounting principles.
• C) Disclosure of a major customer's identity is required.
• D) Geographic area information must be disclosed in interim financial statements.
• E) A company comprised of only one operating segment does not have to report geographic area information.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive due to higher market price.

Binding Price Ceiling

A government-imposed limit on the price of a product or service that is set below the market equilibrium, leading to shortages and a decrease in supply.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market price.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.