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:

Financial Statement

Reports that summarize a company's financial performance, status, and cash flows over a specified period.

Permanent/Temporary

A classification that distinguishes between actions or objects that are intended to last indefinitely (permanent) and those expected to change or conclude after a certain period (temporary).

Normal Balance

The side of the accounting equation (debit or credit) where increases in the account are recorded.

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheet, income statement, and cash flow statement.