A Business Incurs a Loss from a Hurricane

question 67

Multiple Choice

A business incurs a loss from a hurricane. It is the first time the business has had a loss from such an event. This loss would probably be classified on an income statement as an:

• A)adjustment to the beginning balance of retained earnings.
• B)extraordinary item.
• C)operating expense.
• D)other expense item.

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Definitions:

West Indies

A region of the Caribbean comprising numerous islands, some of which were historically significant centers of the Atlantic slave trade.

Racial War

A conflict based on racial differences and hostilities, often involving systematic discrimination or violence against a particular racial group.

Prigg v. Pennsylvania

An 1842 Supreme Court case that held federal law superseded state law regarding fugitive slaves, undermining states' rights to enforce anti-slavery laws.

Atlantic Slave Trade

The forced transatlantic transportation of African slaves to the Americas from the 16th to the 19th centuries.