What Two Disclosure Guidelines for Operating Segment Information Are Designed

question 50

Essay

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

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Definitions:

Gain On Sale

The profit received from selling a capital asset for more than its purchase price.

Plant Asset

A long-term asset used in the production of goods or services, not expected to be consumed or converted into cash within a year.

Book Value

The worth of an asset as reported in the balance sheet, determined by subtracting any depreciation from the asset's initial cost.

Depreciable Cost

The total amount that an asset’s value can be depreciated over its useful life, excluding salvage value.