Which of the Following Items Should Be Classified as an Extraordinary

question 169

Multiple Choice

Which of the following items should be classified as an extraordinary item on an income statement?

• A) gain on the retirement of a bond payable
• B) loss from hurricane damage in Iowa
• C) loss due to a discontinued operation in Colorado
• D) selling treasury stock for more than the company paid for it

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Definitions:

Labor Market

The market in which individuals offer their labor to employers in exchange for wages, showing the relationship between the supply of labor and the demand for it.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, keeping all other inputs constant.

Fourth Worker

In the context of diminishing returns, it could refer to a point where adding an additional worker leads to a lesser increase in output.

Marginal Productivity

The extra output that a business gains by adding one more unit of input, such as labor or capital.