Which of These Is the Justification for Reporting Segment Assets

question 5

Multiple Choice

Which of these is the justification for reporting segment assets or liabilities?

• A)Only the assets or liabilities which are reported to the chief decision maker
• B)All assets or liabilities should be reported
• C)All assets or liabilities that have a value greater than 10% of that segments assets or liabilities should be reported
• D)With the exception of profit or loss,all other assets or liabilities are disclosed if they would be reported to the chief decision maker

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Definitions:

Small Business Owner

An individual who owns and operates a small business, typically taking on considerable financial risks in the hope of profit.

Holding Costs

The expenses associated with storing inventory, including warehousing, insurance, and depreciation.

Ordering

The process of requesting goods, services, or work to be provided or performed by another party.

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods and services.