Separately disclosing an income or expense item as an extraordinary item in the income statement
A)is a very common practice.
B)is popular with executives
C)is no longer permissible.
D)is popular with shareholders

Question

Quizplus · Accepted Answer

Separately disclosing an income or expense item as an extraordinary item in the income statement is no longer permissible according to Generally Accepted Accounting Principles (GAAP) as of 2015. This is because it was difficult to determine what qualifies as an extraordinary item, leading to inconsistency and subjectivity among companies in their financial reporting. Instead, companies are now required to separately disclose material items that are either unusual in nature or occur infrequently.

Separately Disclosing an Income or Expense Item as an Extraordinary