The disposal of a significant component of a business is called
A)a change in accounting principle.
B)an extraordinary item.
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 under Generally Accepted Accounting Principles (GAAP). It is reported separately in the income statement, and includes the gain or loss on disposal, as well as the operating results of the component up until the disposal date.

The Disposal of a Significant Component of a Business Is