In Regards to Extraordinary Items,which of the Following Statements Is

question 128

Multiple Choice

In regards to extraordinary items,which of the following statements is not correct?

• A)Losses due to lawsuits do not qualify as extraordinary.
• B)An extraordinary gain is reported the same as a loss - net of the income tax effect.
• C)Taking of a company assets by a foreign government are generally considered to be extraordinary items.
• D)Extraordinary items are reported separately from continuing operations because of their infrequent and unusual nature.

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Definitions:

Billed

The process of sending or presenting an invoice to customers for goods or services provided.

Customers

Persons or organizations that buy products or services from a company.

Supplies Account

An account that tracks the cost of supplies consumed or on hand.

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to distribute income and expenses to the correct period.