When items of income and expense are material,and their nature and amount are separately disclosed,this could indicate the existence of:
A) an extraordinary item.
B) an abnormal item.
C) an adjusting item.
D) an unusual item.

Question

Quizplus · Accepted Answer

The disclosure of material items of income and expense that are separately disclosed but not classified as extraordinary or abnormal would indicate the presence of unusual items. An extraordinary item is a rare and significant event that is not expected to occur again in the future, while an abnormal item is a non-recurring event that is not considered unusual. An adjusting item refers to a transaction that requires adjusting journal entries to be made in the accounting system.

When Items of Income and Expense Are Material,and Their Nature