Which of the Following Most Likely Would Be Considered a Discontinued

question 7

Multiple Choice

Which of the following most likely would be considered a discontinued operation?

• A) Production or marketing functions are shifted from one location to another.
• B) A sporting goods manufacturer has a bicycle division that meets FASB's definition of a component of the entity and decides to outsource the manufacture of its bicycles.
• C) The unprofitable brands of a beauty products component of an entity that manufactures and sells consumer products are discontinued.
• D) An entity that is a franchiser in the quick-service restaurant business also operates company-owned restaurants that are unprofitable in a certain region and,as a result,the entity decides to exit both the quick-service business as well as the company-owned restaurants in that region.

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Definitions:

Inputs

Resources, information, or effort that is put into a system or process to achieve an output or a result.

Technology Component

Elements or parts of a technological system, such as hardware, software, and network resources, that are essential for its functioning.

Throughputs

The amount of material or items passing through a system or process within a given period.

Technology Component

An element or part of a larger technological system that performs a specific function.