Which of the Following Is Considered an Unusual Item Affecting

question 20

Multiple Choice

Which of the following is considered an unusual item affecting the prior period's income statement?

• A) a change in accounting principles
• B) fixed asset impairments
• C) an extraordinary item
• D) discontinued operations

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law that aims to protect investors by making corporate disclosures more reliable and accurate, enhancing financial transparency and accountability.

Audit Committee

A subcommittee of a company's board of directors responsible for overseeing financial reporting, audit processes, and compliance with laws and regulations.

Public Accounting Firm

A business organization that provides auditing, tax, consulting, and financial advisory services to clients.

Proxy

An authority to act on behalf of another person in voting or making decisions.