Which of the following is an example of a nonrecurring item?
a) Accounting changes
b) Special items
c) Discontinued Operation
d) All of the above
Financial accounting provides an effective accounting framework that is employed by companies to prepare financial statements. It provides principles and standards that ensure that the accounting information presented is reliable, objective and relevant. It should be noted that if financial information is not faithfully represented, then it becomes unreliable to its users.
Answer and Explanation:
Answer: Option d.
Non-recurring items refer to certain types of losses or gains that are shown on an organization's income statement and that such losses or gains are unlikely to occur on a regular basis in the future. They include discontinued operation, special expense, unusual or infrequent items, and accounting changes.
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Learn more about this topic:
from TECEP Principles of Financial Accounting: Study Guide & Test PrepChapter 16 / Lesson 8