The Following Items Are Extraordinary Items EXCEPT

question 22

Multiple Choice

The following items are extraordinary items EXCEPT:

• A)loss due to hurricane damage of plant in Wisconsin.
• B)loss of vehicles due to damage from blizzard in Southern California.
• C)loss due to expropriation of company assets by a foreign government.
• D)loss on lawsuit.

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Definitions:

Transaction Costs

Expenses incurred when buying or selling goods or services, including fees, taxes, and other charges that make up the total cost of a transaction besides the price of the good or service itself.

Risk Reduction

Strategies or actions taken to decrease or mitigate the impact of uncertainties on business objectives or investment outcomes.

Balance Sheet

A financial statement at a given point in time that shows assets on one side and liabilities and net worth on the other side; because assets must equal liabilities plus net worth, the two sides of the statement must be in balance.

Net Worth

The total assets minus total external liabilities of an individual or a company, indicating their overall financial position.