In Regards to Extraordinary Items,which of the Following Statements Is

question 128

Multiple Choice

In regards to extraordinary items,which of the following statements is not correct?

• A)Losses due to lawsuits do not qualify as extraordinary.
• B)An extraordinary gain is reported the same as a loss - net of the income tax effect.
• C)Taking of a company assets by a foreign government are generally considered to be extraordinary items.
• D)Extraordinary items are reported separately from continuing operations because of their infrequent and unusual nature.

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Definitions:

Merge

The combination of two or more entities into one, often with the goal of synergy or efficiency improvement.

Sell

The act of exchanging a product or service for money or other forms of consideration.

Close

The end of a trading session in financial markets or the process of finalizing a financial transaction.

Managers

Individuals responsible for directing and overseeing the operations and employees within an organization.