Popson Inc. incurred a material loss which was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as:
A. An extraordinary loss.
B. A separate line item between income from continuing operations and income from discontinued operations.
C. A separate line item within income from continuing operations.
D. A separate line item in the retained earnings statement.
Ans: C. A separate line item within income from continuing operations.
Business
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Jack started a construction company. To protect his personal assets from the claims of creditors and claimants, he decided to incorporate the business. Incorporating the business illustrates which method of risk treatment?
(a) retention (b) noninsurance transfer (c) avoidance (d) loss control
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A lease that transfers the benefits and risks of ownership should be classified as an operating lease.
a. true b. false
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