Which of the Following Is Not an Aspect in Identifying

question 16

Multiple Choice

Which of the following is not an aspect in identifying an operating segment?

• A)The business component's operating results are reviewed regularly by the enterprise's chief operating decision maker.
• B)It is a component of the enterprise that is expected to generate revenues and expenses.
• C)Discreet financial information on the business component is regularly available through the company's financial reporting system.
• D)Other companies in the same industry use similar operating segments.

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Definitions:

Net Income

Net income refers to the total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Owned Subsidiary

A company whose majority of shares or voting rights are held by another company, making it a controlling entity.

Equity Method

The equity method is an accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits in proportion to their ownership.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue. It indicates the company's financial performance over a specified period.