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29 July, 02:14

The disposal of a business segment is reported as discontinued operations. True or false?

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  1. 29 July, 03:26
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    True, When the businesses decide not to carry on their operations further it will be reported as Discontinued operations and is shown in extraordinary items.

    Explanation:

    The disposal of business segment is caused due to some major change or shift that leads to financial dis balance and ultimately leads to the shutting down of the operations and so it will be reported in the discontinued operations. The business segment when disposed of or sold it will be reported as discontinued operations.
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