_____ To qualify as an operating segment under FAS 131, a component of an enterprise must
A) Have business activities with external parties or other components of the same enterprise.
B) Be a separate legal entity.
C) Have revenues with unaffiliated customers.
D) Have profitable operations or expectations of having profitable operations.
E) Not be part of a vertically integrated operation.

Question

Quizplus · Accepted Answer

Under FAS 131, an operating segment must engage in business activities from which it may earn revenues and incur expenses, including transactions with other components of the same enterprise.

_____ to Qualify as an Operating Segment Under FAS 131