Question
Which of the following is not an exceptional item in
Profit and loss account?Solution
Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly. Examples of extraordinary expenses include: · Sale of an investment in subsidiary and associated companies; · Significant charge in Government fiscal policy; · Discontinuance of business segment. All other are exceptional items Conceptual clarity through class discussions and practice Questions like below:
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