How Should a Material, Infrequent Event Not Meeting the Criteria

question 150

Multiple Choice

How should a material, infrequent event not meeting the criteria for an extraordinary item be disclosed in the income statement?

• A) shown as a separate item in income from continuing operations
• B) shown in income from continuing operations but not shown as a separate item
• C) shown after income from continuing operations but before extraordinary items
• D) shown after extraordinary items net of income tax but before net income

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Definitions:

Environmental Tobacco Smoke

Smoke from burning tobacco products and smoke exhaled by smokers, also known as secondhand smoke.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.

Supply

Supply is the total amount of a specific good or service available to consumers, and it increases or decreases based on the good's price.

Demand

The desire for a particular good or service coupled with the ability and willingness to pay for it.