Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. when reporting unusual or infrequent items in the

When reporting unusual or infrequent items in the income statement which of the following is...

90.2K

Verified Solution

Question

Accounting

When reporting unusual or infrequent items in the income statement which of the following is not correct?

Multiple Choice

  • If a material event is either unusual in nature or an infrequent occurrence it is classified on the income statement as a special or unusual item in continuing operations.

  • If a material event is either unusual in nature or an infrequent occurrencesuch as a one-time charge resulting from a major restructuringit may be classified on the income statement as a special or unusual item in continuing operations or treated as an extraordinary item if it has been a number of years since the companys last major restructuring.

  • Firms that use early debt retirement will report the associated gains and losses as part of income from continuing operations with separate line-item disclosure.

  • The write-off of obsolete inventory would be reported on the income statement as a special item in continuing operations.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students