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

Extraordinary gains and losses do not arise from terminated involvement in a line of business. The other characteristics listed are valid criteria for determining whether a gain or loss is extraordinary.

Extraordinary Gains and Losses Arise from Events That Have All