Which of the following is considered a "nonrecurring item"?
a) Impairment of assets
b) Restructuring charges
c) Extraordinary item
d) All of the above
Financial accounting is a branch of accounting that provides a framework that enables organizations to prepare and present accounting information in a systematic manner. Preparation and presentation of financial statements require the application of the accepted accounting standards and principles. Financial statements are important for the reason that they help internal and external users to make informed business decisions.
Answer and Explanation:
Answer: Option d.
A non-recurring item can be described as a kind of loss or gain indicated on the income statement of an organization and that it expected or likely that such an item will not occur in the future on a regular basis. Non-recurring items include special expenses, extra-ordinary items, asset impairments, among others. It should be noted that GAAP stopped including the concept of extra-ordinary items since December 2015. Instead, it classifies such items as infrequent or unusual.
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Learn more about this topic:
from TECEP Principles of Financial Accounting: Study Guide & Test PrepChapter 16 / Lesson 8