When a settlement gain or loss arises due to closing a business segment it is recognized as a debit or credit to (in):
A) accrued pension obligation.
B) other costs within discontinued operations.
C) pension expense.
D) accrued/prepaid pension cost.

Question

Quizplus · Accepted Answer

When a business segment is closed, any settlement gain or loss is recognized as a debit or credit to other costs within discontinued operations. This reflects the costs associated with the closure of the segment, which may include severance pay or other expenses. The other answer options are not relevant to the recognition of settlement gains or losses in this context.

When a Settlement Gain or Loss Arises Due to Closing