Under which of the following conditions would frost damage be considered an extraordinary item for income reporting purposes?
A)only if frosts in the geographical area are unusual in nature and occur infrequently
B)only if frosts are normal in the geographical area but do not occur frequently
C)only if frosts occur frequently in the geographical area but can be covered by insurance policies
D)under any circumstances frost damage should be classified as an extraordinary item

Question

Quizplus · Accepted Answer

Frost damage would be considered an extraordinary item only if it is unusual in nature and occurs infrequently. This means that it is not a regularly occurring event in the geographic area and is not something that the company could reasonably have planned for or anticipated. This would make it an exceptional and non-recurring event that could significantly impact the company's financial performance.

Under Which of the Following Conditions Would Frost Damage Be