Which one of the following would be classified as an extraordinary item?
A)Expropriation of property by a foreign government
B)Losses attributed to a labor strike
C)Write-down of inventories
D)Gains or losses from sales of equipment

Question

Quizplus · Accepted Answer

The expropriation of property by a foreign government is an unusual and infrequent event that is outside of the normal course of business operations and thus would be classified as an extraordinary item. Losses from a labor strike, write-downs of inventories, and gains or losses from sales of equipment are all considered to be part of the normal course of business operations and would not be classified as extraordinary items.

Which One of the Following Would Be Classified as an Extraordinary