The Financial Results of a Discontinued Segment Must Be Reported

question 101

True/False

The financial results of a discontinued segment must be reported separately on the income statement.

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Definitions:

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties involved to their positions before the contract was made.

Contract of Adhesion

A standard-form contract prepared by one party to be signed by another party in a position of weaker bargaining power, often not negotiable.

Fraudulent Misrepresentation

The act of intentionally providing false information with the aim of deceiving another party, often to induce them into a contract.

Mutual Mistake

A misunderstanding shared by both parties involved in a contract, leading to a misalignment in agreement terms.