Which of the following would be treated as an extraordinary item?
A) Expropriation of an entity's operations in a foreign country
B) The write-down of inventory due to obsolescence
C) A loss resulting from a strike by workers against an entity
D) The write-off of accounts receivable not expected to be collected

Question

Quizplus · Accepted Answer

Expropriation of an entity's operations in a foreign country is an unusual and infrequent event that is not related to the entity's ordinary business operations and is beyond its control, which makes it an extraordinary item. The write-down of inventory due to obsolescence, a loss resulting from a strike by workers against an entity, and the write-off of accounts receivable are considered ordinary and common in business operations and are not treated as extraordinary items.

Which of the Following Would Be Treated as an Extraordinary