To qualify as an extraordinary item,a gain or loss must:

Question

Quizplus · Accepted Answer

An extraordinary item is defined as a gain or loss that is material in amount, unusual in nature, and not expected to recur. It is typically infrequent, irregular, and highly unpredictable. It is important to note that the item needs to be both unusual and infrequent to qualify as extraordinary. Therefore, option C is the correct answer. Option A is incorrect because it refers to a prior period, while extraordinary items are relevant to the current period. Option B presents an incorrect assumption about the size of an item not being the only determinant. Option D refers to a discontinued segment of the business, which may qualify as a discontinued operation rather than an extraordinary item.

To Qualify as an Extraordinary Item,a Gain or Loss Must