Which of the Following Would Appear as an Extraordinary Item

question 139

Multiple Choice

Which of the following would appear as an extraordinary item on the income statement?

• A) loss resulting from the sale of fixed assets
• B) gain resulting from the disposal of a segment of the business
• C) loss from land condemned for public use
• D) liquidating dividend

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Definitions:

Accounting Profits

The total revenue of a company minus the explicit costs and depreciation.

Normal Profits

The return to the business owners for the opportunity cost of their implicit inputs.

MRP

Marginal Revenue Product, a term in economics that represents the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Investment

The allocation of resources, such as capital or time, in order to generate future profit or income.