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
A) I and V
B) III and IV
C) I and III
D) I, II, and III

Question

Quizplus · Accepted Answer

For a gain or loss to qualify as extraordinary on the income statement, it must be both unusual in nature and infrequent in occurrence. Discontinued operations, nonoperating items, or events that have never occurred do not meet the criteria for extraordinary treatment.

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