Which of the Following Statements Is True Regarding the Identifying

question 81

Multiple Choice

Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments?

• A) Operating segments are components of an enterprise that engage in business activities and from which it only recognizes revenues.
• B) The corporate controller reviews each operating segment's operating results to assess performance.
• C) A component may be classified as an operating segment without revenues assuming that it generates a material level of expense.
• D) An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments.
• E) All parts of a company must be included in an operating segment.

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Definitions:

Microglial Cells

Specialized cells in the central nervous system that act as the primary immune defense and play a role in inflammation and repair after injury.

Cytoplasm Extensions

Structures such as pseudopodia that extend from the cell body to aid in movement or feeding.

Capillaries

Tiny blood vessels that connect arteries and veins, facilitating the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances between blood and tissues.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.