Which of the following statements is/are true about segmental analysis? (1) A company that is not publicly
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Question:
Which of the following statements is/are true about segmental analysis?
(1) A company that is not publicly traded may want to perform segmental analysis for performance assessment and managerial decision-making purposes.
(2) A reportable segment is an operating segment that meets all the following thresholds: its revenue, its profit, its assets and its liabilities must all be above 10% of the company's total revenues, profit, assets and liabilities.
A. (1) only
B. Both (1) and (2)
C. Neither (1) nor (2)
D. (2) only
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