Just as a house has rooms, a company has departments. These can be internal or external. These departments may be significant enough to have individual investor impact. If this is the case, they must be reported. Now address the following questions regarding segment reporting:

Under Generally Accepted Accounting Principles, what is the definition of a business segment?

When must business segments be submitted?

How must business segments be submitted?

Provide an example of a firm that commonly reports its business segments.