Question :
Incomes/expenses that arise from transactions that are clearly different from the ordinary business activities and therefore are not expected to incur frequently are called:-
Option 1:
Prior period items
Option 2:
Extraordinary items
Option 3:
Abnormal items
Option 4:
Non-ordinary items
Answer (1)
27th Jan, 2024
Correct Answer:
Extraordinary items
Solution : The income statement events that are both unique and infrequent are known as extraordinary items in accounting. They are erratic and unrelated to the core business operations.
Hence the Correct answer is option 2.
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