A component of an enterprise that may earn revenues and incur expenses, and about which management evaluates separate financial information in deciding how to allocate resources and assess performance is a(n):
A) identifiable segment.
B) operating segment.
C) reportable segment.
D) industry segment.

Question

Quizplus · Accepted Answer

An operating segment is a component of an enterprise that earns revenues and incurs expenses, and for which separate financial information is available and evaluated by the entity's chief operating decision maker in deciding how to allocate resources and assess performance.

A Component of an Enterprise That May Earn Revenues and Incur