If a Material Event Is Either Unusual in Nature or an Infrequent

question 27

True/False

If a material event is either unusual in nature or an infrequent occurrence-such as a one-time charge resulting from a major restructuring-it may be classified on the income statement as a special or unusual item in continuing operations or treated as an extraordinary item if it has been a number of years since the company's last major restructuring.

Identify the difference between informational and normative social influences.

Explain the concept of deindividuation and its effects on individual behavior.

Understand the effects of group dynamics on decision-making, including groupthink, social loafing, and polarization.

Describe the investment model of relationships and factors influencing relationship commitment.

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Journal Entries

The recordings of financial transactions in the bookkeeping system of a business, which include the debits and credits affecting the company's accounts.

Par Value

The nominal or face value of a share of stock as designated by the issuing corporation, playing a role in legal capital requirements.