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


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 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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