Non-Ordinary Items Resulting in Income or Loss

question 18

Multiple Choice

Non-ordinary items resulting in income or loss

• A)​include unusual but not infrequent gains.
• B)​are treated the same as ordinary items when calculating the effective tax rate.
• C)​are always treated as a total group when calculating the effective rate for the quarter.
• D)​are always excluded from interim reporting.

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Definitions:

Personal Debt

The total amount of money an individual owes to lenders, including loans, credit card debt, and mortgages.

Cash Distribution

The payment of earnings, or other financial assets, to shareholders or partners in a company or fund.

Income-Sharing Ratio

The predetermined agreement on how profits or losses will be distributed among partners or stakeholders in a business arrangement.

Capital Deficiency

A financial state where a company's liabilities exceed its assets, indicating financial distress.