An extraordinary item can result from
a. a segment of the business being sold
b. corporate income tax being paid
c. a change from one accounting method to another acceptable accounting method
d. a transaction or event that is unusual and occurs infrequently
d
You might also like to view...
Identify how each of the following items is shown on the statement of cash flows. Identify each as operating (O), investing (I), financing (F), or non-cash investing and financing (N).
Which of the following is an example of a business investment?
A) net revenue B) operating profit C) gross rating points D) marketing budget E) profit margin
Which of the following would be the most ethical approach to proposal writing?
A) Discuss flaws in your competitor's products or services so the audience does not error in deciding who to grant the project to. B) Make product or service comparisons based on customer reviews C) Ignoring other options that would work for the audience, if the audience did not specifically request information on those D) Promise whatever it will take to win the contract, and determine how to meet those obligations after E) Discuss the costs that will accurately meet your audience's requirements and expectations.
Goodwill
a. is created when a business is purchased at a price below fair value of its net assets. b. is amortized like patents and trademarks. c. refers to an intangible asset of a business that is created from such favorable factors as location, product quality, reputation, and managerial skill. d. is reported in the fixed assets section of the balance sheet.