Which of the Following Are Characteristics of an Extraordinary Item

question 19

Multiple Choice

Which of the following are characteristics of an extraordinary item?

• A) Unusual in nature
• B) Infrequent in occurrence
• C) Material in amount
• D) All of these are correct.

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Definitions:

Purchases

Items bought or acquired by a company for various purposes, primarily for resale in the course of business.

Cost Of Goods Available

The total cost of inventory available for sale during a period, calculated as beginning inventory plus purchases minus ending inventory.

Periodic Inventory System

An accounting method where inventory is physically counted at specific intervals to determine the level of inventory and cost of goods sold.

Perpetual Inventory System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.