Classification as an extraordinary item on the income statement would be appropriate for the
A)gain or loss on disposal of a component of the business.
B)substantial write-off of obsolete inventories.
C)loss from a strike.
D)none of these.

Question

Quizplus · Accepted Answer

Extraordinary items are events that are both unusual and infrequent. None of the options listed qualify as extraordinary items under current accounting standards.

Classification as an Extraordinary Item on the Income Statement Would