Which of the Following Statements Is True Regarding Extraordinary Items

question 28

Multiple Choice

Which of the following statements is true regarding extraordinary items on the income statement?

• A) U.S. GAAP prohibits the presentation of extraordinary items on the income statement.
• B) IFRS prohibits the presentation of extraordinary items on the income statement.
• C) U.S. GAAP allows extraordinary gains and losses on the balance sheet.
• D) IFRS allows the classification of gains and losses on the income statement as extraordinary as long as long as they are both unusual in nature and infrequent in occurrence.

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Definitions:

Information Processing System

A system, either computer-based or human, that processes information through stages including input, processing, output, and storage.

Lifespan

The duration of time from an individual's birth to their death.

Information Processing Capacities

The ability of the brain to process and interpret information received from sensory inputs.

Cognitive Ability

Refers to the capacity for performing mental processes like thinking, reasoning, problem-solving, and understanding complex ideas.