Which of the following should be classified as an extraordinary item on the income statement?
A) gain on a sale of a long-term investment
B) loss due to discontinued operations
C) restructuring charges
D) loss resulting from an infrequent natural disaster

Question

Quizplus · Accepted Answer

A loss resulting from an infrequent natural disaster is an extraordinary item as it is a significant and unusual event that is not expected to recur in the foreseeable future. The other options (gain on sale of long-term investment, loss due to discontinued operations, and restructuring charges) are not considered extraordinary items because they are expected to occur in the normal course of business operations.

Which of the Following Should Be Classified as an Extraordinary