A Company Should Report a Restructuring Charge as an Extraordinary

question 12

True/False

A company should report a restructuring charge as an extraordinary item because these write-offs are not part of a company's ordinary and typical activities.

---

Definitions:

Debits

Entries in accounting that represent an increase in assets or expenses, or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.

Journal Entries

The recording of financial transactions into a company's accounting records, documenting the details of financial transactions that affect the financial statements.

Debit Accounts

Accounts that are increased with a debit entry, indicating either an increase in assets or expenses or a decrease in liabilities, equity, or revenue.