A Key Objective of Providing Financial Reporting Information by Segment

question 9

Multiple Choice

A key objective of providing financial reporting information by segment is:

• A) to allow detailed analysis to be undertaken by users such as segment profit margin analysis;
• B) to allow the user to better understand the entity's future performance;
• C) to highlight poorly performing areas of an entity's business to users;
• D) to allow users to better assess the entity's risks and returns.

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Definitions:

Phi Phenomenon

The perception of unbroken movement created by quickly viewing a series of independent objects one after another, known as an optical illusion.

Monocular Cue

Visual information that allows perception of depth and distance using one eye.

Clearness

The quality of being easily understandable or free from ambiguity.

Retinal Disparity

A visual depth cue that results from the eyes' slightly different views of the world, allowing for depth perception.