Asked by Carol Hersan on Jul 06, 2024

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The disposal of a significant component of a business is called

A) other comprehensive income.
B) unrealized gain or loss.
C) an other expense.
D) discontinued operations.

Discontinued Operations

Components of a business, such as a department or segment, that have been disposed of or are designated for disposal.

Significant Component

A major part or element of a larger system that plays a critical role in the system's overall function or performance.

  • Determine and elucidate the elements and importance of discontinued operations within financial statements.
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Verified Answer

MP
Megha PatelJul 11, 2024
Final Answer :
D
Explanation :
Discontinued operations refers to the disposal of a significant component of a business. Other comprehensive income, unrealized gain or loss, and other expenses refer to different accounting concepts.