An important argument for providing segmental information in the financial reports is:
A) It is simpler and easier for users to follow.
B) Consolidated information is so aggregated that it may disguise poor performance and very good performance among segments of the entity.
C) The shareholders of the individual companies in the group can use the segment information to assess the performance of their company.
D) The segments of the entity will be taxed separately on their earnings.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Segmental information allows users to identify both poor and strong performing segments that may not be apparent when only viewing consolidated financial information. This is important for investors and other stakeholders who want a comprehensive understanding of a company's performance.

An Important Argument for Providing Segmental Information in the Financial