_____ A component of a vertically integrated operation
A) Is always a separate operating segment.
B) Is always a reportable operating segment.
C) Can never be a separate operating segment.
D) Can never be a reportable operating segment.
E) None of the above.

Question

Quizplus · Accepted Answer

A component of a vertically integrated operation can be a separate operating segment if it earns revenues and incurs expenses, and its operating results are regularly reviewed by the entity's chief operating decision maker. It can also be a reportable segment if it meets quantitative thresholds outlined in financial reporting standards. Therefore, none of the provided statements are universally correct.

_____ a Component of a Vertically Integrated Operation