For Item to Be Considered a Special Item, It Should

question 9

True/False

For item to be considered a special item, it should be either unusual in nature or infrequent in occurrence but not both.

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Definitions:

Inventories

are stocks of goods and materials held by a business in anticipation of future sales or production needs.

Sales Revenue

The total amount of money generated by the sale of goods or services before any costs or expenses are deducted.

Direct Method

An approach to preparing the cash flow statement where actual cash flow information from operating activities is used.

Accounts Receivable

Receivables from customers for goods or services that have been furnished but remain unpaid.