Which of the following does U.S. GAAP not consider to be an objective of segment reporting? a.It helps users better understand the enterprise’s performance. b. It helps users better assess the enterprise’s prospects for future cash flows. c. It helps users make more informed judgments about the enterprise as a whole. d. It helps users make comparisons between a segment of one enterprise and a similar segment of another enterprise

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter1: Accounting As A Tool For Managers
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Problem 16MC: Which of the following terms means knowing how a business is run and how it is influenced by...
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Which of the following does U.S. GAAP not consider to be an objective of segment reporting?

a.It helps users better understand the enterprise’s performance.

b. It helps users better assess the enterprise’s prospects for future cash flows.

c. It helps users make more informed judgments about the enterprise as a whole.

d. It helps users make comparisons between a segment of one enterprise and a similar segment of another enterprise

 

21. Livro Company has three operating segments with the following information:

                                                            Books  Calendars  Bags

Sales to outsiders                             $12,000  $9,000  $8,000

Intersegment transfers                      1,000     500          1,500

In addition, corporate headquarters generates revenues of $2,000.

What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?

a.$2,900

b.$3,200

c.$3,300

d. $3,400

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