Betsy Kirkland, Inc

question 53

Multiple Choice

Betsy Kirkland, Inc.incurred a flood loss during the first quarter of 2018 that is deemed both unusual and not expected to recur again in the near future.The loss is considered immaterial to the twelve-month period, but is material in amount relative to the first quarter.The proper accounting treatment in the first quarter interim statement is to:

• A) Ignore the loss.
• B) Record the loss in the first quarter as an unusual loss, net of income taxes.
• C) Record one-fourth of the loss in the first quarter as an unusual loss, net of income taxes.
• D) Ignore the loss in the first quarter, and record it in the annual statement only.
• E) Record the loss in the first quarter, but not as an unusual loss, and disclose the loss in a separate note or in the income statement as a separate line item.

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Definitions:

Cross-Functional

An approach involving collaboration among people from different departments or areas of expertise within an organization, aiming to achieve a common goal.

Task Forces

Special groups set up to achieve a specific goal or to work on a particular problem, often within a limited time frame.

Virtual Team Formation

The process of assembling a group of individuals from various locations to work together through electronic communication and collaboration tools.

Lobbying

The act of attempting to influence the decisions of government officials or legislative bodies through advocacy, communication, or pressure.