Which of the following statements is true regarding the identifying factors used to determine which components of
Question:
Which of the following statements is true regarding the identifying factors used to determine which components of a business are operating segments?
A. Operating segments are components of an enterprise that engage in business activities and from which it only recognizes revenues.
B. All parts of a company must be included in an operating segment.
C. A component may be classified as an operating segment without revenues assuming that it generates a material level of expense.
D. The corporate controller reviews each operating segment’s operating results to assess performance.
E. An organizational unit can be an operating segment even if all of its revenues or expenses result from transactions with other segments.
South Western Federal Taxation 2020 Corporations, Partnerships, Estates and Trusts
ISBN: 9780357109168
43rd edition
Authors: William A. Raabe, James C. Young, William H. Hoffman, Annette Nellen, David M. Maloney