CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Which of the following can be considered unusual or infrequent items?

I. Gains or losses from disposal of a portion of a business segment
II. Gains or losses from sales of assets
III. Provisions for environmental remediation
IV. Impairments and write-offs
A. I, II and III
B. I, II and IV
C. I, II, III and IV
Explanation: The following can be considered as unusual or infrequent items:
  • Gains or losses from disposal of a portion of a business segment
  • Gains or losses from sales of assets
  • Provisions for environmental remediation
  • Impairments and write-offs

User Contributed Comments 6

User Comment
MattNYC why isn't I considered income from discontinued operations?? I don't get it. It shouldn't be part of Infrequent or U
MattNYC Nevermind - the question states a "portion" of a business segment - thus it is Unusual or Infrequent
nzdavid Provision for environmental remediation isn't so unusual and infrequent these days..
jejasin I didn't realize that II was considered infrequent...only got it right because II was in every option
bwhitele I think II implies the sale of fixed assets that is why it would be infrequent in nature because the main assets that would be sold frequently are inventories and maybe marketable securities
andrej0143 Thought provisions for environment remediation was standard in the modern world
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