Which of the Following Would Be Considered an Extraordinary Item

question 42

Multiple Choice

Which of the following would be considered an extraordinary item on an income statement of a bank?

• A) Revenue from the sale of the bank's office building.
• B) Interest income when the spread is greater than 10%.
• C) Realized security gains.
• D) Collection on loans already charged off.
• E) All of the above would be considered extraordinary items.

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Definitions:

Division of Labor

The separation of tasks in any economic system or organization so that participants may specialize, increasing efficiency and productivity.

Flatter Span

A management structure with fewer levels of hierarchy and a broader span of control, allowing for more direct communication and less formal supervision.

Decentralization

The distribution of decision-making power and authority from a central figure or location to multiple smaller units or levels within an organizational hierarchy.

Specialized Jobs

Positions that focus on specific tasks or responsibilities, requiring particular skills or training.