Non-Ordinary Items Resulting in Income or Loss

question 18

Multiple Choice

Non-ordinary items resulting in income or loss

• A)​include unusual but not infrequent gains.
• B)​are treated the same as ordinary items when calculating the effective tax rate.
• C)​are always treated as a total group when calculating the effective rate for the quarter.
• D)​are always excluded from interim reporting.

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Definitions:

Social Security

The social insurance program in the United States financed by federal payroll taxes on employers and employees and designed to replace a portion of the earnings lost when workers become disabled, retire, or die.

Medicaid

A federal program that helps finance the medical expenses of individuals covered by the Supplemental Security Income (SSI) and Temporary Assistance for Needy Families (TANF) programs.

Low-income Workers

Individuals employed in jobs that pay wages below a certain threshold, often struggling to meet basic living expenses.

Moral Hazard

A situation in which one party in a transaction has the opportunity to assume additional risks that negatively affect the other party, often arising in insurance and finance.