Question

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 The income tax effects of a discontinued segment are combined with income tax from continuing operations. 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.

Answer 1

Answer: The income tax effects of a discontinued segment are combined with income tax from continuing operations.

Explanation:

A business segment is part of a company's operations which serves a particular product line and it should be noted that the segment has assets, liabilities, and financial results of operations which can be differentiated from those of other parts of the company.

The option that the income tax effects of a discontinued segment are combined with income tax from continuing operations is not true.