21.

Which of the following best describes the accounting for operating segments?

Select one:

A. Two or more operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics. Those characteristics can be defined very broadly and left for accountants to decide.

B. Two or more operating segments cannot be aggregated into a single operating segment for reporting purposes.

C. Two or more operating segments may be aggregated into a single operating segment, provided that the total external revenue exceeds 50% of total consolidated revenue.

D. Two or more operating segments may be aggregated into a single operating segment if the segments have similar economic characteristics and are similar in nature in areas such as their products and services, their production processes, the types and class of their customers, and the methods that they use to distribute their products.

E. Both A and C

F. Both C and D