In Accordance with AASB 8 an Operating Segment Is a Component

question 10

Multiple Choice

In accordance with AASB 8 an operating segment is a component of an entity:

• A) that engages in business activities from which it may earn revenues and incur expenses.
• B) whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and asses its performance.
• C) for which discrete financial information is available.
• D) All of the given answers
• E) that engages in business activities from which it may earn revenues and incur expenses and whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and asses its performance.

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Definitions:

Standardization

The process of developing uniform procedures for administering and scoring a test to ensure consistency and comparability of results.

Average Intelligence

The level of cognitive ability or IQ that is considered to be in the middle range of the population.

Predicts

The act of forecasting future events or conditions based on current or past data, patterns, or observations.

Validity

The extent to which a test measures or predicts what it is supposed to.