- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 4. Non-Recurring Items
CFA Practice Question
Unusual or infrequent items are disclosed ______.
B. separately as a component of income from continuing operations and are reported pretax
C. separately as a component of income from continuing operations and are reported after tax
A. together as part of income and reported pretax
B. separately as a component of income from continuing operations and are reported pretax
C. separately as a component of income from continuing operations and are reported after tax
Correct Answer: B
Unusual or infrequent items are disclosed separately as a component of income from continuing operations and are reported pretax.
User Contributed Comments 4
| User | Comment |
|---|---|
| Daniel2006 | How to define unusual ? How to define infrequent ? |
| katybo | unusual in nature and infrecuent in time (frecuency) |
| georgek | isn't it possible to not break it out. i believe the text uses the word "may" be separately disclosed. Obviously it is in the company's favor to do so, but is not required (must) |
| ascruggs92 | georgek it is required, not an option. If the text implies it is optional, the text you have read is incorrect |