Which of the Following Is Considered an Unusual Item Affecting

question 105

Multiple Choice

Which of the following is considered an unusual item affecting the prior period's income statement?

• A) Change in accounting principles
• B) Fixed asset impairments
• C) Extraordinary item
• D) Discontinued operations

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Definitions:

Social Rules

Guidelines for behavior that are accepted by a group; they govern interactions among individuals within societies to maintain order.

Secondary Stakeholder Groups

Those individuals or organizations indirectly affected by a company's operations, typically not directly engaged in transactions with the company but impacted by its actions.

Legitimacy

The general perception that an action, entity, or institution is appropriate and justified according to socially constructed norms, values, beliefs, and definitions.

Invisible Hand

A metaphor used by economist Adam Smith to describe the self-regulating behavior of the marketplace.