Which of the Following Is Not an Extraordinary Item

question 15

Multiple Choice

Which of the following is not an extraordinary item?

I. Loss on abandonment of property
II. Gain on disposal of a business segment
III. Effect of a strike against a key supplier
IV. Write-down of deferred research and development costs

• A)I and III
• B)II and IV
• C)I, II, and III
• D)I, II, III, and IV

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or aging.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Revenue

The sum of money received from selling goods or providing services that are fundamental to a company's main business activities.

Indirect Effects

Consequences of an action that are not immediately apparent or directly linked to the action but occur as a secondary effect.