All of the Following Statements Regarding a Business Segment Are

question 36

Multiple Choice

All of the following statements regarding a business segment are true except:

• A)A business segment is a part of a company's operations that serves a particular product line.
• B)A segment has assets,liabilities,and financial results of operations that can be distinguished from those of other parts of the company.
• C)A company's gain or loss from selling or closing down a segment is reported separately.
• D)The income tax effects of a discontinued segment are combined with income tax from continuing operations.
• E)A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.

---

Definitions:

Laspeyres Index

A price index used to measure the relative change in the price of a fixed basket of goods and services over time, using the quantities of a base period.

Prices

The monetary value assigned to a product or service, determining how much it costs to buy.

Bundle

A combination of various goods and services selected by consumers, used in economics to analyze choices and preferences.

Giffen Good

A product that people consume more of as the price rises, violating the basic law of demand in economics.