Which of the Following Is Not an Example of Restructuring

question 30

Multiple Choice

Which of the following is not an example of restructuring?

• A) Increase or decrease the amount of common stock.
• B) Eliminating profitable but unrelated divisions.
• C) Merging with companies in related industries.
• D) Divesting of an unprofitable division.

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Definitions:

Internal Users

Employees or departments within an organization who use financial and operational information for decision-making and management purposes.

Measurement Principle

The accounting principle that determines the criteria under which financial elements are quantified in the financial statements.

Actual Cost

The actual expenditure incurred on goods or services, including all amounts spent to acquire them, minus any discounts or rebates.

Cash-Equivalent Amount

The value of an asset that can easily be converted into a known amount of cash within a short period.