- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 6. Non-Recurring Items and Non-Operating Items
CFA Practice Question
True or False? If an extraordinary gain of $30,000 has occurred, it should be reported net of taxes at more than $30,000.
Correct Answer: False
The extraordinary gain, net of taxes, is less than $30,000. Net of taxes means that taxes are subtracted from the extraordinary gain of $30,000.
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