According to Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information," how do firms identify reportable segments?
A) By geographic regions
B) By product lines
C) By industry classification
D) By designations used inside the firm

Question

Quizplus · Accepted Answer

Firms identify reportable segments based on the internal organization and management's approach to operating decisions, which often aligns with the designations used inside the firm.