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 readers of financial statements want segmented information because consolidation can obscure important facts that may be necessary for evaluating financial statements. Segment information can provide a more detailed understanding of how different divisions of a company are performing and allow for better analysis and decision-making.

Why Do Financial Analysts and Other Readers of Financial Statements