Which of the following is not true for an operating segment according to U.S. GAAP?
A) Discrete financial information generated by the internal accounting system is available.
B) The segment earns revenues and incurs expenses.
C) The segment is regularly reviewed by a chief decision maker to assess performance decisions.
D) The segment is regularly reviewed by a chief decision maker to make resource allocations.
E) An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.

Question

Quizplus · Accepted Answer

This statement is not true according to U.S. GAAP. An organizational unit can be considered an operating segment even if all of its operating transactions are only with other segments of the organization, as long as it meets the other criteria for being an operating segment.

Which of the Following Is Not True for an Operating