Under Which of the Following Conditions Would Material Flood Damage

question 43

Multiple Choice

Under which of the following conditions would material flood damage be considered an extraordinary item for financial reporting purposes?

• A) Only if floods in the geographical area are unusual in nature and occur infrequently.
• B) Only if the flood damage is material in amount and could have been reduced by prudent management.
• C) Under any circumstances as an extraordinary item.
• D) Flood damage should never be classified as an extraordinary item.

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