Which of the following is not a characteristic of an extraordinary item?
A) Material in amount.
B) Nonrecurring.
C) Unusual given the nature of the firm's activities.
D) Requires a cash outflow.

Question

Quizplus · Accepted Answer

An extraordinary item does not necessarily require a cash outflow. An item can be classified as extraordinary if it meets the criteria of being both material in amount, nonrecurring, and unusual given the nature of the firm's activities.

Which of the Following Is Not a Characteristic of an Extraordinary