Analysts agree that extraordinary gains/losses should be excluded from ratio analysis because they are one-time events, and can distort annual results from normal operations.

Question

Quizplus · Accepted Answer

Extraordinary gains/losses are non-recurring events and can affect the accuracy of ratio analysis when evaluating a company's performance. Therefore, analysts recommend excluding them from ratio analysis to avoid distorting the annual results from normal operations.

Analysts Agree That Extraordinary Gains/losses Should Be Excluded from Ratio