If an item meets one but not both criteria for extraordinary item treatment,it is correctly excluded from extraordinary items and included with other revenue and expenses.

Question

Quizplus · Accepted Answer

This statement is true. If an item meets only one of the two criteria for extraordinary items, it cannot be classified as an extraordinary item and must be included with other revenue and expenses. Extraordinary items must meet both criteria - they must be unusual in nature and occur infrequently.

If an Item Meets One but Not Both Criteria for Extraordinary