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:

Market Equilibrium

The condition in a market where the quantity supplied is equal to the quantity demanded at a certain price level.

Total Consumer Surplus

The total benefit received by consumers in a market transaction, measured as the difference between what consumers are willing to pay and what they actually pay.

Price Ceiling

A government-imposed limit on how high the price of a good or service can be charged, usually intended to protect consumers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.