Which of the following most likely would be considered a discontinued operation?
a. Production or marketing functions are shifted from one location to another.
b. A sporting goods manufacturer has a bicycle division that meets FASB's definition of a component of the entity and decides to outsource the manufacture of its bicycles.
c. The unprofitable brands of a beauty products component of an entity that manufactures and sells consumer products are discontinued.
d. An entity that is a franchiser in the quick-service restaurant business also operates company-owned restaurants that are unprofitable in a certain region and, as a result, the entity decides to exit both the quick-service business as well as the company-owned restaurants in that region.
e. None of these answer choices is correct.
D
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Proper application of accounting principles is most dependent upon the
a. existence of specific guidelines. b. oversight of regulatory bodies. c. external audit function. d. professional judgment of the accountant.
Expected standards are a valuable tool for motivation and control
Indicate whether the statement is true or false
Nell is considering forms of business organization for Optic Center, a medical eye clinic. An advantage of a limited liability partnership is that, depending on the applicable state statute, partners can avoid personal liability for A) their own wrongful acts
B) any partnership obligation. C) their own and other partners' wrongful acts. D) none of the choices.
One company acquires another company in a combination accounted for under the acquisition method. The acquiring company decides to apply the initial value method in accounting for the combination. What is one reason the acquiring company might have made this decision?
A. When the initial method is used, no worksheet entries are required in the consolidation process. B. Operating results on the parent's financial records reflect consolidated totals. C. It is the only internal reporting method allowed by generally accepted accounting principles. D. It is the only method allowed by the SEC. E. It is relatively easy to apply.