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AICPA CPA-Financial Exam - Topic 3 Question 113 Discussion

A transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:
D) After discontinued operations of a segment of a business.
A) After cumulative effect of accounting changes and before discontinued operations of a segment of a business.
B) After cumulative effect of accounting changes and after discontinued operations of a segment of a business.
C) Before cumulative effect of accounting changes and before discontinued operations of a segment of a business.

AICPA CPA-Financial Exam - Topic 3 Question 113 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 113
Topic #: 3
[All CPA-Financial Questions]

A transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:

Show Suggested Answer Hide Answer
Suggested Answer: D

Choice 'd' is correct. An extraordinary item (a transaction that is both 'unusual in nature' and 'infrequent in occurrence') should be reported separately as a component of income after discontinued operations of a segment of a business.

The cumulative effect of a change in accounting principle is shown on the retained earnings statement.

This is why memorizing the mnemonic 'idea' is so important.


by Odelia at Jul 10, 2025, 03:59 AM

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Flo
7 months ago
I'm not so sure about that, seems a bit off.
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Scarlet
7 months ago
Wait, why would it be before discontinued operations?
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Vallie
7 months ago
I agree, option A makes the most sense!
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Carma
7 months ago
It's definitely reported after cumulative effects.
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Dong
7 months ago
Unusual transactions should be reported separately, true!
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Kandis
8 months ago
I remember discussing this in class, and I believe it’s important to report these transactions after the cumulative effect but before any discontinued operations. So maybe A?
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Elin
8 months ago
I’m a bit confused about where to place unusual transactions. I thought they came before discontinued operations, but now I’m second-guessing myself.
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Dyan
8 months ago
This feels similar to a practice question I did last week. I think the answer is B, but I can't recall the exact reasoning behind it.
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Cory
8 months ago
I think I remember that unusual transactions should be reported after the cumulative effect, but I'm not sure if it's before or after discontinued operations.
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Alyce
9 months ago
I'm a little confused on this one. I know the transaction needs to be reported separately, but I'm not sure if it goes before or after the other items mentioned. I'll have to review my notes and think it through carefully.
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Viola
9 months ago
I've got this! The answer is C - the unusual, infrequent transaction should be reported before the cumulative effect of accounting changes and before discontinued operations. That keeps it separate from the normal business activities.
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Van
9 months ago
Okay, let me think this through. The question is asking about the proper placement of an unusual, infrequent transaction on the income statement. I'll need to consider the timing of the transaction relative to other items like accounting changes and discontinued operations.
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Lili
9 months ago
Hmm, this is a tricky one. I'm not entirely sure where this type of transaction would be reported on the income statement. I'll need to review the accounting standards to make sure I get this right.
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Kerry
9 months ago
I think I know the answer to this one. The key is that the transaction is unusual and infrequent, so it should be reported separately from the normal operations of the business.
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Temeka
11 months ago
Because reporting unusual transactions before accounting changes makes more sense to me.
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Felix
11 months ago
Why do you think it's C?
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Glory
11 months ago
C is the way to go, my friends. Unusual transactions should be reported before any other changes. Simple as that!
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Sang
10 months ago
Yes, C is the way to go. Unusual transactions need to be clearly identified and reported before any other changes.
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Emmanuel
11 months ago
I think C makes sense too. It's important to highlight unusual transactions separately from other components of income.
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Luisa
11 months ago
I agree, C is the correct answer. Unusual transactions should be reported separately before any other changes.
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Temeka
12 months ago
I disagree, I believe it's C.
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Felix
12 months ago
I think the answer is A.
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Aleshia
12 months ago
D seems like the best option to me. Unusual transactions should come after discontinued operations, not before.
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Norah
11 months ago
D seems like the best option to me. Unusual transactions should come after discontinued operations, not before.
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Deeanna
11 months ago
A) After cumulative effect of accounting changes and before discontinued operations of a segment of a business.
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Larae
1 year ago
I think B is the correct answer. It makes sense to report unusual transactions after any accounting changes and discontinued operations.
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Geoffrey
11 months ago
User 3: I agree with Geoffrey. A seems to be the most logical choice for reporting unusual transactions.
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Lashunda
12 months ago
User 2: I believe A is the correct answer. Unusual transactions should be reported after accounting changes but before discontinued operations.
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Lajuana
12 months ago
User 1: I think C is the correct answer. Unusual transactions should be reported before accounting changes and discontinued operations.
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