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.

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Definitions:

Merchantable

A quality of goods being fit for the purpose for which such goods are ordinarily used, a requirement for sales under many commercial laws.

Trade or Market

generally refers to a specific area or industry where goods and services are bought and sold.

Fit for Particular Purpose(s)

A legal concept that implies a sold item is suitable for the specific use intended by the buyer, which the seller is aware of.

Adequately Contained

A condition in which something is sufficiently controlled or held to prevent harm or spread.