One of the Conditions Used to Determine If Two or More

question 4

Multiple Choice

One of the conditions used to determine if two or more operating segments may be aggregated into a single operating segment is:

• A) the segments have the same manager in charge;
• B) the aggregation is deemed to provide useful information for users;
• C) the segments have similar operating results;
• D) the segments have similar methods used to distribute their product or provide their services.

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Definitions:

Income From Continuing Operations

The earnings generated from a company's ongoing core business operations, excluding extraordinary items.

Cumulative Effect

The aggregate impact of an accounting change or policy adjustment over the period before the adjustment is implemented, often recognized immediately in financial statements.

Income Tax Expense

The amount of money that companies or individuals owe the government based on their earnings.

Disposal Of A Segment

The act of selling, disposing of, or eliminating a certain portion or division of a company's operations.