Under which of the following conditions would material flood damage be considered an extraordinary item for financial reporting purposes?
a. only if floods in the geographical area are unusual in nature and occur infrequently.
b. only if the flood damage is material in amount and could have been reduced by prudent management.
c. under any circumstances as an extraordinary item.
d. flood damage should never be classified as an extraordinary item.

A.Only if floods in the geographical area are unusual in nature and occur infrequently.

Explanation: Extraordinary items are special losses or gains that don't occur regularly and are unusual on nature. Since the materials damaged as a result of floods in the area are unusual and infrequently occurs they are to be considered as extraordinary items for financial statements purposes.

Business entities usually prepare the financial statements for Extraordinary items separately as they only occur on a one time basis.

answer:

an example of solubility is salt or sugar dissolving in water.

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