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 recognizes 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.

Question

Quizplus · Accepted Answer

According to U.S. GAAP, an organizational unit can still be considered an operating segment even if all its transactions are with other segments of the organization, as long as it meets the other criteria for an operating segment.

Which of the Following Is Not True for an Operating