Which of these is generally an example of an extraordinary item?
A) Loss incurred because of a strike by employees.
B) Write-off of deferred marketing costs believed to have no future benefit.
C) Gain resulting from the devaluation of the U.S. dollar.
D) Gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot.

Question

Quizplus · Accepted Answer

An extraordinary item refers to a material event or transaction that is both unusual and infrequent in nature. The gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot is an example of an extraordinary item, as it is an event that is both unusual and infrequent. The other options are not extraordinary items, as they may be part of the normal operation of a business or are not unusual or infrequent in nature.

Which of These Is Generally an Example of an Extraordinary