Nonrecurring Items Reported Separately on an Income Statement Might Include

question 88

Multiple Choice

Nonrecurring items reported separately on an income statement might include:

• A) gains or losses on discontinued operations.
• B) salaries expense.
• C) sales returns and allowances.
• D) gross profit.

---

Definitions:

Changed Estimate

An adjustment made to the book value or depreciation of an asset, based on updated information about its expected useful life or residual value.

Nonrecurring Gains

Profits that are not expected to happen regularly or repeatedly, coming from events like asset sales, lawsuit winnings, or one-time events affecting financial performance.

Income From Continuing Operations

Earnings generated from the normal, recurring activities of a business, excluding any one-time transactions or discontinued operations.

Nonrecurring Losses

Losses that are not expected to happen again in the foreseeable future, differentiated from normal business operations.