A discontinued operation refers to:
A)The sale or disposal of a significant component of a company's operations.
B)Discontinued inventory items.
C)Inventory items that have been completed and sold.
D)The sale of most long-term assets.

Question

Quizplus · Accepted Answer

A discontinued operation refers to the sale or disposal of a significant component of a company's operations. This can include selling off a division, business unit, or product line. It is often considered a significant event for accounting purposes and requires additional disclosure in financial statements. Discontinued inventory items and completed sales are not the same as discontinued operations. The sale of most long-term assets may not necessarily be considered a discontinued operation unless it is a significant component of the company's operations.

A Discontinued Operation Refers To