An Extraordinary Item Can Result from

question 112

Multiple Choice

An extraordinary item can result from

• A) a segment of the business being sold
• B) corporate income tax being paid
• C) a change from one accounting method to another acceptable accounting method
• D) a transaction or event that is unusual and occurs infrequently

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Definitions:

Excess Cash

Funds that exceed the necessary operating, investing, and financing requirements of a company, potentially available for dividends or investments.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.