An extraordinary item is one that
A)occurs infrequently and is uncontrollable in nature.
B)occurs infrequently and is unusual in nature.
C)is material and is unusual in nature.
D)is material and is uncontrollable in nature.

Question

Quizplus · Accepted Answer

An extraordinary item is defined as an event or transaction that is both infrequent and unusual in nature. It is an event that is not expected to occur regularly within the normal course of business operations. It may also be material in amount or impact. Therefore, option B, which states, "occurs infrequently and is unusual in nature," is the best choice.

An Extraordinary Item Is One That