When a decision is made to discontinue an operation,the net assets should be written down to a best estimate of net realizable value.

Question

Quizplus · Accepted Answer

When an operation is discontinued, the net assets should be written down to their estimated net realizable value, which represents the amount that can be realized from the sale or disposal of the assets. This is done to ensure that the financial statements reflect the economic reality of the situation and prevent overstatement of asset values. Therefore, the statement is true.

When a Decision Is Made to Discontinue an Operation,the Net