Extraordinary gains and losses arise from events that have all the following characteristics except:
A) they are unusual given the nature of the firm's activity.
B) they are nonrecurring.
C) they are material in amount.
D) they result from terminated involvement in a line of business.

Question

Quizplus · Accepted Answer

The termination of involvement in a line of business does not necessarily make an event extraordinary, as it may be a normal part of the firm's activity. Therefore, events that result from terminated involvement in a line of business are not always considered extraordinary gains or losses.

Extraordinary Gains and Losses Arise from Events That Have All