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.
E) A major item.

Question

Quizplus · Accepted Answer

The presence of material items of income and expense that are separately disclosed could indicate the existence of an unusual item. While the other choices may also be applicable in certain situations, such as an extraordinary item or abnormal item, the key characteristic emphasized in the question is the separate disclosure of the nature and amount of the item. This suggests that the item is not part of the regular course of business and therefore qualifies as unusual.

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