Asked by Alicja Gawlik on May 23, 2024

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Gains and losses from sales of individual operating assets may satisfy the criteria for extraordinary item treatment.

Extraordinary Item

An unusual and infrequent gain or loss that is reported separately in a company's financial statements to give a clearer picture of its regular income.

Operating Assets

Assets that are used by a business in its daily or regular operations to generate revenue, including cash, inventory, and property, plant, and equipment.

  • Understand the criteria for extraordinary item treatment and asset retirement obligations.
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Shivam NarangMay 27, 2024
Final Answer :
False
Explanation :
Gains and losses from sales of individual operating assets are not considered extraordinary items because they result from ordinary business operations and are not both unusual in nature and infrequent in occurrence.