Which of the Following Would Not Be Classified as an Unusual

question 76

Multiple Choice

Which of the following would not be classified as an unusual and/or infrequent item?

• A)A loss from an enacted law that made inventory unsalable
• B)A loss from settlement of a lawsuit
• C)A loss from a natural disaster that affects the company at infrequent intervals
• D)A loss from restructuring charges

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Definitions:

Residual Income

The amount of income that an individual or company retains after deducting all expenses and cost of capital, including debt and equity costs.

Managerial Performance

Assessment of the effectiveness and efficiency of managers in achieving business objectives, often evaluated through financial and non-financial metrics.

Residual Income

The income that exceeds the required return on investment or minimum acceptable rate of return set by management.

Corporate Minimum Required Rate of Return

The lowest acceptable rate of return on an investment that a corporation deems sufficient for its operations and growth.