When a Company Discontinues and Disposes of a Component Segment

question 27

Multiple Choice

When a company discontinues and disposes of a component segment of its operations,the gain or loss from disposal should be reported as:

• A)an adjustment to retained earnings.
• B)a sale of fixed assets in "other" expense.
• C)an extraordinary item.
• D)an accounting change.
• E)a special item after continuing operations and before extraordinary items.

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Definitions:

Certificate Of Waiver

A document that exempts the holder from having to comply with certain regulations or requirements, often in a healthcare or regulatory context.

Quality Assurance

The systematic process of verifying whether a product or service meets specified requirements.

Quality Control

The processes and measures taken to ensure the quality of a product or service meets specific standards.

Chemical Hygiene Plan

A written program developed to ensure the safe use and handling of chemicals within a workplace.