A transaction that is material in amount, unusual in nature, and infrequent in occurrence, should be presented in the statement of income separately as a component of income:
A) from continuing operations.
B) from discontinued operations.
C) net of applicable income taxes.
D) as a correction of prior years' error.

Question

Quizplus · Accepted Answer

A material transaction that is unusual in nature and infrequent in occurrence should be presented in the statement of income separately as a component of income from continuing operations. This is because such transactions are not expected to occur regularly and can significantly impact the current and future performance of the company.

A Transaction That Is Material in Amount, Unusual in Nature