Question : ________________are incomes and expenses that arise from events or transactions that are clearly distinct from the ordinary business activities of the enterprise and, therefore, are not expected to recur frequently or regularly.
Option 1: Non-operating income
Option 2: Operating income
Option 3: Extraordinary items
Option 4: Operating expenses
Correct Answer: Extraordinary items
Solution :
Answer =
Extraordinary items
Extraordinary items are incomes and expenses that arise from events or transactions that are distinct from the ordinary business activities of the enterprise. They are not expected to recur regularly. These items are typically listed separately on financial statements to provide clarity on the company's financial performance.
Hence, the correct option is 3.
