Popson Inc.incurred a material loss,which was not unusual in character,but was clearly an infrequent occurrence.This loss should be reported as:
A)An extraordinary loss.
B)A loss from discontinued operations.
C)Other revenues and expenses.
D)A separate line item in retained earnings.

Question

Quizplus · Accepted Answer

The loss should be reported as "other revenues and expenses" because it is not an unusual or extraordinary event, and it does not fall under the definition of discontinued operations. It should not be reported separately in retained earnings or as an extraordinary loss.