Each of the Following Is an Extraordinary Item Except the

question 145

Multiple Choice

Each of the following is an extraordinary item except the

• A)effects of major casualties, if rare in the area.
• B)effects of a newly enacted law or regulation.
• C)expropriation of property by a foreign government.
• D)losses attributable to labor strikes.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, typically categorized into operating expenses or non-operating expenses.

Writing Off

The process of recognizing that an asset has lost value or a debt is uncollectible and reflecting this in the accounting records.

Bad Debt

Money owed to a company that is unlikely to be paid by the debtor, often leading to a financial loss for the company.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.