BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Which of the following is one of the possible nonrecurring items that must be shown in a separate line item below the Income from Continuing Operations subtotal in the income statement? a. Gains and losses from the sale of fixed assets.

Detailed explanation-2: -Examples of nonrecurring items include losses due to fire or theft, the write-off of a company division, the acquisition of another company, or the one-time sale of a large piece of property.

Detailed explanation-3: -which of these items would most likely be considered nonrecurring and included in operating income? restructuring and severance costs applicable to asset sales and plant shutdown costs as they are considered part of a company normal operations.

Detailed explanation-4: -The correct answer is option 4. interest expense because interest expense is considered as recurring item as it occurs frequently on regular intervals.

Detailed explanation-5: -What is a Non-Recurring Item? In accounting, a non-recurring item is an infrequent or abnormal gain or loss that is reported in the company’s financial statements. Unlike other items reported by a company, non-recurring items do not arise from the normal company’s operations.