Which of the following would be classified as an extraordinary item on the income statement?
A) loss on disposal of a segment of business
B) cumulative effect of a change in accounting principle
C) a sale of land
D) an error correction that relates to a prior year
E) a loss from a flood in a location that would not be expected to flood

Question

Quizplus · Accepted Answer

Extraordinary items are events and transactions that are distinguished by their unusual nature and infrequency of occurrence. A loss from a flood in a location that would not be expected to flood fits this definition.

Which of the Following Would Be Classified as an Extraordinary