ExpertEasy1 markMultiple Choice
CPA · Question 35 · Area II: Technical Accounting
Which of the following is a required disclosure for a public entity's reportable segments under ASC 280?
Which of the following is a required disclosure for a public entity's reportable segments under ASC 280?
Answer options:
A.
Cash flow from operating activities for each segment
B.
Total liabilities for each segment
C.
A measure of profit or loss for each segment
D.
Research and development expense for each segment
How to approach this question
Recall Segment Reporting requirements: Revenue (External/Intersegment), Profit/Loss, Assets. Liabilities and Cash Flows are NOT required.
Full Answer
C.A measure of profit or loss for each segment✓ Correct
ASC 280 requires disclosing a measure of profit or loss and total assets for each reportable segment. Liabilities and cash flows are not required disclosures.
Common mistakes
Assuming liabilities or cash flows are required.
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