When a Company Decides to Dispose of a Particular Line

question 43

Multiple Choice

When a company decides to dispose of a particular line of operation by selling it to another company,the related assets should

• A)be written up in anticipation of a gain on disposal.
• B)be considered scrap material.
• C)be held at historical cost.
• D)be written down on the expectation of a loss on disposal.

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Definitions:

Economic Landscape

The overall condition and characteristics of the economy at a certain time, including factors like GDP growth, unemployment rates, and inflation.

Government Policy

Decisions, plans, and actions that are undertaken by a government to achieve specific goals within a society.

Computerized Inventory

The use of computer systems and software to track and manage inventory levels, orders, sales, and deliveries.

Preset Standards

Preset standards are predetermined criteria or benchmarks used to measure quality, productivity, or other performance levels in various processes.