nancial Statements Graded Exam 4 An example of an unusual a

nancial Statements / Graded Exam #4 An example of an unusual and infrequent gain or loss is: Select one: O O O O a. A large loss arising from inability to collect an account receivable from a bankrupt customer. b. A large gain from disposal of a segment of the business. c. A gain or loss from sale of an expensive machine no longer needed in the business d. A loss due to restructuring charges.

Solution

1. Answer D

Anexample of an unusual and infrequent gain or loss areinsg is loss due to restructuring charges. Restructuring is very rarely and has a last resort. Therefore restructuring charges unusual loss

2. Answer : C

When there is a prior period omission the change is to made retrospectively. Profit and EPS WON\'T be affected has the current year figures won\'t change.