The disposal of a significant component of a business is called
A) a change in accounting principle.
B) comprehensive income.
C) an other expense.
D) discontinued operations.

Question

Quizplus · Accepted Answer

The disposal of a significant component of a business is classified as discontinued operations in financial statements. This is because it is a significant event that affects the company's financial position and performance and is expected not to continue in the future. The income or loss generated from the discontinued operations is shown separately on the income statement to provide a clear picture of the company's ongoing operations.

The Disposal of a Significant Component of a Business Is