Which of the Following Statements Is True Regarding the Determination

question 112

Multiple Choice

Which of the following statements is true regarding the determination of operating segments in order to decide which segments will be separately reported?

• A) An operating segment is a component of an enterprise that engages in business activities from which it only earns revenues.
• B) The operating results of an operating segment are reviewed regularly by the corporate controller to assess performance.
• C) There is integral financial information available for each operating segment.
• D) An organizational unit can be an operating segment if all of its revenues or expenses result from transactions with other segments.
• E) All parts of a company must be included in some operating segment.

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Definitions:

Minimal Group Paradigm

Experimental methodology to investigate the effect of social categorization alone on behaviour.

Intergroup Behaviour

The interactions and relationships between different groups, often characterized by dynamics such as cooperation, competition, and conflict.

Ethnocentrism

The conviction that one's own ethnic group or culture is superior by nature, typically coupled with contempt for different groups.

Social Identity

That part of the self-concept that derives from our membership in social groups.