An operating segment is a component of a company that does all of the following except
A) has financial information available.
B) engages in business activities to earn revenues and incur expenses.
C) is part of a publicly held company.
D) has operating results that are regularly reviewed by the company's chief operating officer.

Question

Quizplus · Accepted Answer

An operating segment does not need to be part of a publicly held company; it can also be a segment of a privately held company. The other options (A, B, and D) are characteristics of an operating segment according to accounting standards.

An Operating Segment Is a Component of a Company That