Business Segment Information Is Included in the Notes to Financial

question 10

Multiple Choice

Business segment information is included in the notes to financial statements because:

• A)the amounts shown on the financial statements of most companies are just too large to comprehend.
• B)current and potential investors can make more informed judgments about the company.
• C)net income from various geographic areas can be clearly determined.
• D)by combining these amounts for each segment, ROI and cash flows for the company as a whole can be determined.

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Definitions:

Product Development

The complete process of bringing a new product to market, from initial concept through to design, creation, and introduction to consumers.

Federal Trade Commission

A U.S. government agency aimed at protecting consumers and promoting competition, by preventing anticompetitive, deceptive, and unfair business practices.

Early Adopter

A person who starts using a product or technology as soon as it becomes available, often before it has been widely adopted.

Market Trends

The general direction in which a market or the preferences of consumers are moving over time.