A gain or loss that qualifies for extraordinary treatment on the income statement must have which of the following qualities?
I.Unusual in Nature
II.Discontinued Segment
III.Infrequent in Occurrence
IV.Nonoperating in Nature
V.Never Occurred

Question

Quizplus · Accepted Answer

A gain or loss that qualifies for extraordinary treatment on the income statement must have the qualities of being unusual in nature and infrequent in occurrence. Discontinued segment and nonoperating in nature are not necessarily requirements for extraordinary treatment. "Never occurred" is not a valid quality as an event must have occurred to be recognized on the income statement. Therefore, the best choice is C (I and III).

A Gain or Loss That Qualifies for Extraordinary Treatment on the Income