Which of the Following Is a Recurring Item

question 26

Multiple Choice

Which of the following is a recurring item?

• A)Equity in earnings of nonconsolidated subsidiaries
• B)Error of a prior period
• C)Discontinued operations
• D)Extraordinary gain
• E)Cumulative effect of change in accounting principle

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Definitions:

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize, monitor, and control the probability or impact of undesirable events.

Command Systems

Economic systems where decisions about production, investment, and distribution are regulated by a central authority or government rather than market forces.

Consumer Sovereignty

The principle that consumer preferences and choices dictate the production and sale of goods and services in an economy.

Circular Flow Model

An economic model that illustrates the flow of goods and services and money between sectors of the economy.