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:

Time Extension

An additional period of time given to complete a task or project beyond the original deadline.

Positive Body Language

Nonverbal signals that convey a positive impression, such as smiling, open posture, and eye contact.

Taking Control

The act of assuming command or management over a situation, often to direct outcomes or influence behavior.

Follow-up Message

A communication sent to inquire or remind about a previous message or action.