Which of the following is not a requirement in defining an operating segment?
A)The particular component must be generating revenue.
B)The particular component's operating results must be reviewed regularly by responsible company officers.
C)The particular component's financial information is routinely available through the organization's financial reporting system.
D)The particular component incurs expenses in its normal cost of activities.

Question

Quizplus · Accepted Answer

Revenue generation is not a requirement in defining an operating segment. The other three options, reviewing operating results, routine availability of financial information, and the incurring of expenses are all requirements for defining an operating segment.

Which of the Following Is Not a Requirement in Defining