An Extraordinary Item Results from

question 11

Multiple Choice

An extraordinary item results 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:

Elastic

A characteristic of a good or service with demand or supply that is sensitive to changes in price, meaning the quantity demanded or supplied changes significantly.

Supply-side Economics

An economic theory that argues economic growth can be most effectively fostered by lowering taxes and decreasing regulation to increase production.

Tax Cuts

Reductions in the amount of taxes imposed by a government, often aimed at stimulating economic growth by increasing disposable income or encouraging investment.

Labor Supplied

The overall time period that workers consent to and can offer to work, in exchange for an established rate of pay.