Extraordinary items are reported on the income statement as ________.
A)part of income from continuing operations
B)separate line items that are part of any discontinued operations
C)separate line items after income from continuing operations and after any discontinued operations
D)items of other revenues and expenses

Question

Quizplus · Accepted Answer

Extraordinary items are reported separately on the income statement, after income from continuing operations and after any discontinued operations. This is because they are rare and unusual in nature, and therefore should not be included in the regular operations of the company. They are reported below the line for income from continuing operations, in order to differentiate them from regular business activities.

Extraordinary Items Are Reported on the Income Statement as ________