Final answer:
Fatty acyl-CoA is broken down into smaller acetyl-CoA molecules during the process of fatty acid oxidation or beta-oxidation.
Step-by-step explanation:
The breakdown of fatty acids, known as fatty acid oxidation or beta-oxidation, occurs during the conversion of fatty acyl-CoA into smaller acetyl-CoA molecules.
This process takes place in the mitochondria and involves several steps. First, the fatty acyl-CoA combines with carnitine to cross the mitochondrial membrane.
Then, it is converted back into fatty acyl-CoA and further broken down into acetyl-CoA through a series of enzymatic reactions. The resulting acetyl-CoA enters the citric acid cycle to generate ATP for energy production.