Which One of the Following Is a Nonoperating Event That

question 18

Multiple Choice

Which one of the following is a nonoperating event that must be reported on the income statement?

• A) Acquisition of a plant asset to be used in operations
• B) Extraordinary items
• C) Recognition of inventory expense
• D) Consumption of office supplies

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Definitions:

Authority Rule

The formal or legal right given to an individual or group to make decisions, pass judgments, and enforce obedience.

Minority Rule

A situation where a smaller part of a population, or a minority, holds disproportionate power or influence over decision-making processes.

Consensus

A general agreement among members of a group or a process for reaching such an agreement.

High-Performing Teams

Groups that consistently show high levels of collaboration, creativity, and productivity, achieving superior results.