Which of the Following Qualify as an Extraordinary Item

question 90

Multiple Choice

Which of the following qualify as an extraordinary item?

• A) A large gift given to the company.
• B) A loss from obsolete inventory.
• C) A loss from a natural disaster that affects the company at infrequent intervals.
• D) None of the above.

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Definitions:

Consideration

In contract law, something of value exchanged between parties that is necessary for a valid contract.

Offeror's Death

refers to the termination of an offer in contract law due to the death of the person making the offer before it is accepted.

Automatically Terminates

A clause in an agreement that causes the contract to end without the need for notice, upon the occurrence of specific conditions.

Contract Formation

The process by which parties reach an agreement on the terms of a contract, creating mutual obligations enforceable by law.