Answered: Explain how an enterprise determines…

Business

Accounting

Explain how an enterprise determines its operating segments and the factors that influence this determination.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8Q: Define segments and describe how identifying segments within a business might help manage the...

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Which of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry? A. commercial awareness B. conceptualization C. collaboration D. imagination
Define segments and describe how identifying segments within a business might help manage the business.
Which of the following is nor a common goal of an organization? A. operational efficiency B. being acquired by another business C. achieving strategic goals D. measuring financial performance
Under what conditions must an enterprise provide information about geographic areas?
Discuss the principal factors to consider in selecting a form of businessorganization.
Explain the internal business process perspective.
Internal accounting information is used primarily for internal decision making by an enterprise’smanagement.a. What are the three primary purposes of internal accounting information?b. Which of these is the most general and which is the most specific?c. Give several examples of the kinds of decisions that internal accounting information supports.
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Which of the following statements is true for a company that has managers responsible for product and service lines of business and managers responsible for geographic areas (matrix form of organization)?a. Under U.S. GAAP, the company must base operating segments on geographic areas.b. Under IFRS, the company must base operating segments on product and service lines of business.c. Under U.S. GAAP, the company may choose to define operating segments on the basis of either products and services or geographic areas.d. Under IFRS, the company must refer to the core principle of IFRS 8 to determine operating segments.
What is the dominant form of business organization, in terms of the ownership of productive resources? Describe about it?
A central issue in reporting on industry segments of a business enterprise is the determination of which segments are reportable. Required: A. What is a reportable segment B. Explain how a preparer would determine which operating segments to report segment information for. C. What types of segment information must be reported?