If a loss is unusual in nature but not infrequent in occurrence, the loss should be disclosed
A)net of taxes.
B)only in the footnotes.
C)as a separate component of income from continuing operations.
D)as a separate item after disposal of segment, net of taxes.

Question

Quizplus · Accepted Answer

If a loss is unusual in nature but not infrequent in occurrence, it should be disclosed as a separate component of income from continuing operations in the income statement. This treatment ensures that the loss is not buried in other line items and provides investors with a clear understanding of the impact of the loss on the company's ongoing operations.

If a Loss Is Unusual in Nature but Not Infrequent