What Is a "Discontinued Operation

question 14

Multiple Choice

What is a "discontinued operation"?

• A)A component of an entity that either has been disposed of or is classified as held for sale.
• B)A component of an entity that has been disposed of or will be sold within one year.
• C)A component with operations and cash flows that are not distinguishable from the rest of the entity.
• D)A group of assets and liabilities to be disposed of together in separate transactions.

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Definitions:

In‐line Skates

A type of roller skate where the wheels are arranged in a single line to mimic the blade of an ice skate, allowing for a variety of maneuvers.

Equilibrium

A state in a market or economy where supply equals demand, resulting in price stability and no net change in economic quantities.

ATC Curve

A graphical representation of the Average Total Cost, depicting how average cost of production varies with the quantity of output produced.

Efficient

Describes a process or system that achieves maximum productivity with minimum wasted effort or expense.