Unusual gains and losses are items on the income statement that
A) are typical of everyday activities but do not occur frequently.
B) are not typical of everyday activities or do not occur frequently.
C) include write down of inventories and write off of bad debts.
D) are not usually disclosed separately.

Question

Quizplus · Accepted Answer

Unusual gains and losses are items on the income statement that are not typical of everyday activities or do not occur frequently. They could include things like gains or losses from the sale of a subsidiary, an insurance payout from an unexpected event, or a significant legal settlement. They are usually disclosed separately on the income statement since they can distort the overall picture of a company's financial performance.

Unusual Gains and Losses Are Items on the Income Statement