For an item to be treated as extraordinary, it must be unusual in nature and occur infrequently.

Question

Quizplus · Accepted Answer

The definition of an extraordinary item according to accounting principles is that it must be both unusual in nature (meaning it is not a typical or expected occurrence) and infrequent (meaning it does not occur regularly or frequently). So, both criteria must be met in order for an item to be considered extraordinary.

For an Item to Be Treated as Extraordinary, It Must