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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Definitions:

Experience-Expectant

Describes neural growth that requires a certain kind of environmental stimulation that is almost certain to occur in the experience of most members of a species. An example is development of the visual system that requires exposure to light in order to occur.

Epigenesis

The control of genetic expression by both regulatory DNA and environmental factors.

Genetic Expression

The process by which information from a gene is used to synthesize functional gene products, such as proteins, which can influence an organism's traits.

Transcription

The complex chain of cellular processes that involves translating the code specified by a gene into the production of a protein. This series of biochemical events ultimately accounts for genetic expression or influence.