All of the Following Statements Regarding a Business Segment Are

question 230

Multiple Choice

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

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

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Definitions:

Compounded Annually

This refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once a year.

College Education

A form of higher education aiming to grant degrees in various fields of study, obtained after completing a program at a college or university.

Interest on Interest

The concept of earning interest on previously earned interest, contributing to compound growth.

Compounded Annually

Interest calculation method where the interest is added to the principal at the end of each year, and the total becomes the principal for the next year.