Which of the Following Statements Regarding Requirements for Segment Disclosures

question 34

Multiple Choice

Which of the following statements regarding requirements for segment disclosures is most accurate?

• A) Segment disclosures must include most of the items found in financial statements for the entire enterprise.
• B) Segment reporting is generally applied in a similar fashion in various companies,since the requirement are detailed and inflexible.
• C) Segment reporting requirements are so flexible that firms can often resist disclosing information they would prefer to keep confidential.
• D) Segment reporting is not required for any entities;the standards are concerned with determination of segment information if a company wishes to disclose it.

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Definitions:

Higher-than-average Returns

Profits or yields that exceed the norm or average for a particular investment or sector.

Beta

A measure of the volatility or risk of a security or a portfolio in comparison to the market as a whole.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification, including risks specific to an industry, company, or region.

Unsystematic Risk

The risk that is specific to a company or industry, which can be reduced through diversification.