What is a "discontinued operation"?
A)A component of an entity that either has been disposed of or is classified as held for sale.
B)A component of an entity that has been disposed of or will be sold within one year.
C)A component with operations and cash flows that are not distinguishable from the rest of the entity.
D)A group of assets and liabilities to be disposed of together in separate transactions.

Question

Quizplus · Accepted Answer

A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale. This includes a business or a geographical area of operations that the entity has decided to discontinue or sell in order to focus on its core operations. Generally, the results of a discontinued operation are reported separately in the income statement to help users of financial statements understand the impact of the discontinued operation on the entity's financial performance.

What Is a "Discontinued Operation