What is a "component" of an entity?
A)A division of an entity that either has been disposed of or is classified as held for sale.
B)A group of assets and liabilities to be disposed of together in a single transaction.
C)A part of an entity with operations and cash flows distinguishable from the rest of the entity.
D)A group of non-current assets that have been disposed or are classified as held for sale.

Question

Quizplus · Accepted Answer

A component of an entity is a part or segment of the entity that has operations and cash flows that can be differentiated from the rest of the entity. It might be a business unit, a product line, or a geographical area, for example. Components are often used in financial reporting to provide more transparent and relevant information about an entity’s performance.

What Is a "Component" of an Entity