Which of the Following Items Is Most Likely to Be

question 80

Multiple Choice

Which of the following items is most likely to be reported as an extraordinary loss?

• A) Losses due to the write-down of inventory.
• B) Losses on the sale of long-term assets.
• C) Losses due to business restructuring.
• D) Uninsured losses from a natural disaster.

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Definitions:

Outstanding Checks

Checks issued by a company that have been recorded in its books but have not yet been cashed by the recipient.

Deposits In Transit

Deposits in transit refer to money that has been received and recorded by a business but not yet by its bank, often because of time needed for the banking processing.

NSF Check

A check that cannot be processed due to insufficient funds in the account it was drawn on, also known as a "bounced check."

EFT Deposit

An electronic funds transfer directly into a bank account, considered a safe and efficient way to transfer money.