If a Loss Is Unusual in Nature but Not Infrequent

question 70

Multiple Choice

If a loss is unusual in nature but not infrequent in occurrence, the loss should be disclosed

• A)net of taxes.
• B)only in the footnotes.
• C)as a separate component of income from continuing operations.
• D)as a separate item after disposal of segment, net of taxes.

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Definitions:

Investments

Assets purchased with the expectation that they will generate income in the future or appreciate and be sold at a higher price.

Standby Equipment

Equipment that is kept on hand and ready to be used as a backup in case primary equipment fails.

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business that are expected to provide benefits for more than one year.

Intangible Assets

Non-physical assets owned by a business, such as patents, copyrights, trademarks, and goodwill, that provide economic benefits.