Periodically Clients Discontinue a Particular Line of Operation by Shutting

question 53

Multiple Choice

Periodically clients discontinue a particular line of operation by shutting down or selling a line of business or a company,which usually occurs over at least several months.In these situations the client is to write down net assets to a best estimate of net realizable value and do which of the following?

• A)recognize a loss.
• B)recognize a gain.
• C)recognize a loss or a gain.
• D)not recognize any gain or loss.

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Definitions:

Good X

A placeholder term used to denote a specific product or commodity in economic models and discussions.

Good Y

A term used in economics to represent a generic second good, often used in theoretical models comparing two different goods.

Budget Constraint

The restrictions on the sets of goods and services a consumer can purchase, determined by their income and the cost of these items.

Nachos

A Mexican dish consisting of heated tortilla chips covered with melted cheese and often also served with a variety of toppings.