For purposes of discontinued operations, the key elements in determining that a separate segment exists are that the component is
A) a separate business and a separate legal entity.
B) a separate legal entity and generates its own net cash flows.
C) in a separate geographic region and can be sold.
D) a separate business and generates its own cash flow.

Question

Quizplus · Accepted Answer

The key elements in determining a separate segment for discontinued operations are that the component is a separate business and generates its own cash flow. Being a separate legal entity, being in a separate geographic region, and generating net cash flows all might be indicative of a separate segment, but are not the key determining factors.

For Purposes of Discontinued Operations, the Key Elements in Determining