The Disposal of a Significant Component of a Business Is

question 171

Multiple Choice

The disposal of a significant component of a business is called

• A) a change in accounting principle.
• B) comprehensive income.
• C) an other expense.
• D) discontinued operations.

---

Definitions:

Weighted Average Cost

A calculation that takes into account the varying costs of goods or capital across different sources, weighted by their respective proportions in the total.

Marginal Tax Rate

The rate of tax applied to the next dollar of taxable income.

Pre-tax Cost

The expense or cost incurred by a corporation before the deduction of tax liabilities.

Pay Interest

The act of compensating lenders or depositors for the use of their money, typically expressed as an annual percentage of the principal.