Which of the Following Is Not True for an Operating

question 28

Multiple Choice

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.

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