Which of the Following Items Should Be Classified as an Unusual

question 136

Multiple Choice

Which of the following items should be classified as an unusual item on an income statement?

• A) gain on the retirement of a bond payable
• B) gain on a sale of a long-term investment
• C) loss due to a discontinued operation in Colorado
• D) selling treasury stock for more than the company paid for it

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market stability where there is no excess supply or demand.

Equilibrium Quantity

The amount of goods or services available and sought after at the balance price.

Scalping

The practice of buying tickets, securities, or commodities for immediate resale at higher prices, often to exploit short-term fluctuations.

Equilibrium Level

The point at which market supply equals market demand, leading to a stable situation where there is neither excess demand nor excess supply.