A large uninsured loss from a fire is treated on the income statement as an extraordinary item.

Name: A large uninsured loss from a fire is treated on the income statement as an extraordinary item.
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Question

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An extraordinary item is an event or transaction that is both unusual in nature and infrequent in occurrence. A large uninsured loss from a fire would meet these criteria and would be reported as an extraordinary item on the income statement.

A Large Uninsured Loss from a Fire Is Treated on the Income