Which of the following items is most likely to be reported as an extraordinary loss?
A) Losses due to the write-down of inventory.
B) Losses on the sale of long-term assets.
C) Losses due to business restructuring.
D) Uninsured losses from a natural disaster.

Question

Which of the following items is most likely to be reported as an extraordinary loss?
A)	Losses due to the write-down of inventory.
B)	Losses on the sale of long-term assets.
C)	Losses due to business restructuring.
D)	Uninsured losses from a natural disaster.

Quizplus · Accepted Answer

Uninsured losses from a natural disaster are considered to be unexpected and rare events and are therefore most likely to be reported as an extraordinary loss. The other options, such as inventory write-downs, losses on the sale of long-term assets, and losses due to business restructuring, are considered to be ordinary business expenses and would not qualify as extraordinary losses.

Which of the Following Items Is Most Likely to Be