An operating segment is a component of a company
A)that engages in business activities to earn revenues and incur expenses
B)whose operating results are regularly reviewed by the company's chief operating officer for budgeting and evaluation purposes
C)for which financial information is available
D)all of these choices

Question

Quizplus · Accepted Answer

All of these options are characteristics of an operating segment. An operating segment must engage in business activities to earn revenues and incur expenses, have its operating results regularly reviewed by the company's COO for budgeting and evaluation purposes, and have financial information available.

An Operating Segment Is a Component of a Company