Question

Which of the following is/are required to report on business segments? I. Publicly-traded enterprises II. Not-for-profit enterprises III. Joint ventures

Answer 1

Answer:

The answer to this question is I. publicly traded companies

Explanation:

A publicly traded company otherwise known as public liability company, is a company which allows the public to subscribe to its  shares  and whose shares are transferable. A public liability company can generate capital by selling its shares to the public through initial public offer (IPO) . As an organisation owned by the shareholders, a public liability enterprise is mandated to report its audited financial statement to the general public.

The purpose of this is to provide an accurate picture of the company's performance to its shareholders.

FAS No. 131 mandates a public business enterprise to report financial and descriptive information about its reportable operating segments.