Why do financial analysts and other readers of financial statements want segmented information?
A)Consolidation obscures facts that may be important for evaluating financial statements.
B)More information is always preferred to less information.
C)To ensure that illegal business combinations are not taking place.
D)Models for economic forecasting have not been developed using consolidated financial statement information.

Question

Quizplus · Accepted Answer

Financial analysts and other readers of financial statements want segmented information because consolidation can obscure important facts that may be important for evaluating financial statements. By having segmented information, they can better evaluate specific business segments and make more informed decisions.

Why Do Financial Analysts and Other Readers of Financial Statements