Unusual Gains and Losses Are Items on the Income Statement

question 123

Multiple Choice

Unusual gains and losses are items on the income statement that

• A) are typical of everyday activities but do not occur frequently.
• B) are not typical of everyday activities or do not occur frequently.
• C) include write down of inventories and write off of bad debts.
• D) are not usually disclosed separately.

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Definitions:

Average Collection Period (ACP)

Measures the average number of days it takes for a company to collect payments from its customers.

Financial Planning

The process of creating strategies for managing financial resources to meet life goals.

Sales Growth

The increase in sales over a specific period, indicating the competitiveness and overall health of a company.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.