An operating segment is a component of a company
A) that engages in business activities to earn revenues and incur expenses
B) whose operating results are regularly reviewed by the company's chief operating officer for budgeting and evaluation purposes
C) for which financial information is available
D) all of these

Question

Quizplus · Accepted Answer

All of these choices are characteristics of an operating segment. An operating segment must engage in business activities to earn revenues and incur expenses, its operating results must be regularly reviewed for budgeting and evaluation purposes by the chief operating officer, and financial information must be available for the segment.

An Operating Segment Is a Component of a Company