Which of the Following Is True with Respect to Extraordinary

question 65

Multiple Choice

Which of the following is true with respect to extraordinary items?

I. Extraordinary items are recorded net of tax in income statement.
II. Extraordinary items, by definition, are probable and unusual in nature.
III. By definition, gains and losses from strikes are always extraordinary.
IV. By definition, gains and losses from sale of property, plant and equipment are never extraordinary.

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

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Definitions:

Justice Theory

A philosophical perspective that focuses on fairness and the equitable treatment of individuals within a society.

Rule Utilitarianism Theory

A normative ethical theory that posits the correctness of actions depends on the rules that lead to the greatest good for the greatest number.

Profit Maximization Theory

An economic principle suggesting that businesses operate to achieve the highest possible profit based on income and cost variables.

Utilitarianism

A moral theory suggesting that the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.