The Phrase Events and Transactions That Are Distinguished by Both

question 16

Multiple Choice

The phrase events and transactions that are distinguished by both their unusual nature and their infrequency of occurrence describes:

• A)Changes in accounting principles
• B)Prior period adjustments.
• C)Extraordinary items
• D)Prior period adjustments

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Definitions:

Cake Factory

A facility dedicated to the mass production of cakes and related bakery items for distribution and sale.

Conversion Cost

The sum of direct labor and manufacturing overhead costs that are required to transform raw materials into finished goods.

Depreciation

The methodical distribution of the expense of a physical asset throughout its expected lifespan.

Oven

An enclosed compartment, usually part of a stove, used for cooking and baking.