When an Entity Classifies a Non-Current Asset as "Held for Sale

question 19

Multiple Choice

When an entity classifies a non-current asset as "held for sale":

• A)the entity no-longer expects to recover its carrying amount through its use.
• B)they are no longer of use to the entity and must be abandoned
• C)always comprise part of a discontinued operation.
• D)they continue to be depreciable assets

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Definitions:

High Reliability

Refers to systems or organizations that operate in conditions where the cost of failure is high, focusing on safety and minimizing errors.

Component Parts

Individual items or pieces that, when assembled, make up a finished product or are integral to its operation.

Mediocre Parts

Components or elements of a system that are of average or slightly below average quality, possibly affecting the overall performance.