Which of the Following Is Not a Characteristic of an Extraordinary

question 96

Multiple Choice

Which of the following is not a characteristic of an extraordinary item?

• A) Material in amount.
• B) Nonrecurring.
• C) Unusual given the nature of the firm's activities.
• D) Requires a cash outflow.

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Definitions:

Equity Ratio

A financial ratio indicating the proportion of shareholder equity as a part of the total assets owned by a company.

Days' Sales Uncollected

A financial metric used to determine the average number of days it takes for a company to collect revenue after a sale has been made.

Profit Margin Ratio

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating the efficiency of the company in managing its operations.

Gross Margin Ratio

A financial metric expressing the difference between sales and the cost of goods sold as a percentage of sales.