Which of the Following Is True

question 79

Multiple Choice

Which of the following is true?
The results of operations of a component of an entity that either has been disposed of or classified as held for sale shall be reported in discontinued operations if:
I.The operations and cash flows of the component have been or will be eliminated from the ongoing operations of the entity as a result of the disposal transaction.
II.The entity continues to have a significant continuing involvement in the operations of the component after the disposal transaction.
III.The entity outsources the manufacturing operations of a component and sells the manufacturing facility of the component but continues to sell the product formerly manufactured by the facility sold.

• A)I, II, and III are all true.
• B)I and II are true, but III is not.
• C)Only II is true.
• D)Only I is true.

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Definitions:

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Statistical Method

A technique or procedure applied to numerical data for the purpose of analyzing, interpreting, or explaining statistical phenomena.

Employee Leasing

A practice where businesses hire their workers through a professional employer organization, which then handles HR, payroll, and other administrative tasks.

Labour Costs

The total expenses incurred by employers for the payment of wages, benefits, and other forms of compensation to employees.