An Event or Transaction Should Be Considered as an Extraordinary

question 43

True/False

An event or transaction should be considered as an extraordinary item if it is unusual in nature and if it occurs infrequently.

---

Definitions:

Retained Earnings

Cumulative earnings of a company that are not distributed to the owners and are reinvested in the business.

2-for-1

Describes a type of stock split where a company divides its existing stock into two shares, effectively doubling the number of shares owned by shareholders but potentially halving the price per share.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Cash Dividend

A disbursement by a corporation from its profits to its stockholders, typically as cash.