Which of the following should be classified as an extraordinary item?
A) Effects of major casualties not infrequent in the area.
B) Write-off of a significant amount of receivables.
C) Loss from the expropriation of facilities by a foreign government.
D) Losses due to a bitter, lengthy labor strike.

Question

Quizplus · Accepted Answer

Loss from the expropriation of facilities by a foreign government should be classified as an extraordinary item because it is an unusual and infrequent event that is outside of the company's control. The other options are not classified as extraordinary items because they are either part of the company's normal operations or are a result of internal issues such as bad debt management or labor disputes.

Which of the Following Should Be Classified as an Extraordinary