Which of the following would be considered an extraordinary item on an income statement of a bank?
A) Revenue from the sale of the bank's office building.
B) Interest income when the spread is greater than 10%.
C) Realized security gains.
D) Collection on loans already charged off.
E) All of the above would be considered extraordinary items.

Question

Quizplus · Accepted Answer

An extraordinary item on an income statement is an event or transaction that is both unusual in nature and infrequent in occurrence. Revenue from the sale of a bank's office building is an uncommon and non-recurring event, making it an extraordinary item. Interest income, realized security gains, and collection on loans charged off are all regular operations of a bank and would not be considered extraordinary.

Which of the Following Would Be Considered an Extraordinary Item