A Material Loss Should Be Presented Separately as a Component

question 43

Multiple Choice

A material loss should be presented separately as a component of income from continuing operations when it is

• A) infrequent in occurrence and unusual in nature.
• B) infrequent in occurrence but not unusual in nature.
• C) a cumulative effect-type change in accounting principle.
• D) an extraordinary item.

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Definitions:

Benefit Audits

The process of reviewing and verifying the accuracy and compliance of an organization's employee benefits program with relevant laws, policies, and contracts.

Claiming Habits

Patterns or tendencies of individuals or groups in asserting or establishing their rights, entitlements, or possessions, often in legal or business contexts.

Defined Contribution Plan

A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the final benefit received by the employee depends on the plan's investment performance.

Length of Service

The duration of time an employee has worked for a particular employer, often affecting their eligibility for certain benefits or recognition.