Extraordinary Items

question 166

Multiple Choice

Extraordinary items:

• A)Are not reported on a corporate income statement.
• B)Are included in income from operations.
• C)Are unusual and infrequent.
• D)Include changes in accounting principle.
• E)Are disclosed before discontinued operations on the income statement.

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Definitions:

Sale Recorded

The process of documenting a sale transaction in the financial books of a company, recognizing revenue.

Deposits in Transit

Funds that have been received and recorded by a company but not yet by its bank.

Bank Reconciliation

Process of verifying the accuracy of both the bank statement and the cash accounts of a business.

Bad Debt Expense

This refers to an expense recognized by businesses to account for invoices that are unlikely to be paid by customers.