Which of the Following Examples Does Not Constitute a Situation

question 19

Multiple Choice

Which of the following examples does not constitute a situation in which a provision for restructuring is created?

• A) Sale or termination of a line of business.
• B) Changes in management structure,for example,eliminating a layer of management.
• C) Litigation with one of the major customers.
• D) Fundamental reorganizations that have a material effect on the nature and focus of the entity's operations.

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Definitions:

Accession

The addition of value to personal property by the use of labor or materials.

Title

A formal document or designation indicating ownership of property or the right to claim something.

Personal Property

Assets that are movable and not fixed permanently to one location, such as furniture, vehicles, and stocks, as opposed to real estate or land.

Ownership Rights

Legal rights and claims that one has over property or assets, allowing them to use, manage, and dispose of them as they see fit.