Extraordinary items need to be treated separately from regular business operations on the ________.
A)balance sheet
B)income statement
C)statement of cash flows
D)statement of changes in shareholders' equity

Question

Quizplus · Accepted Answer

Extraordinary items are usually items that are not a part of the regular business operations and do not occur on a regular basis. Therefore, they should be treated separately on the income statement to give a clearer view of the company's regular operations. The balance sheet, statement of cash flows, and statement of changes in shareholders' equity do not typically show extraordinary items.

Extraordinary Items Need to Be Treated Separately from Regular Business