What is an extraordinary item on the income statement? What is an extraordinary loss? - 12610

Solution Detail
Price: $3.00
  • From: Business,
  • Posted on: Thu 19 Jul, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

What is an extraordinary item on the income statement? What is an extraordinary loss? Provide some examples of extraordinary loss. How does it affect the financial statement?

 

A large stock dividend and stock split can frequently have the same effect on the market price of a corporation’s stock. Explain how stock dividends and stock splits affect the market price of a corporation’s stock.

 

 

Solution Description

What is an extraordinary item on the income statement? What is an extraordinary loss? Provide some examples of extraordinary loss. How does it affect the financial statement?

 

Events that are not usual and do not occur frequently are classed as extra ordinary items. For example a loss that has been sustained by a company due to an earth quake or due to a tornado or a hurricane can be classed as an extra ordinary item. A loss that a company has incurred because one if it