Question

Which of the following is an extraordinary item in Cash Flow Statement?

• A. Sale of Goods
• B. Salary Paid
• C. Compensation received from earthquake loss
• D. Interest Paid

Hint:

Extraordinary items are rare and unusual events not related to regular business operations.

Answer 1

The Correct Option is C

Concept: Extraordinary items arise from events that are:
• Unusual
• Infrequent
• Non-recurring

Step 1: Understanding extraordinary items.
Examples:
• Earthquake loss
• Flood compensation
• Fire insurance claim

Step 2: Analyzing options.

• Sale of Goods — Normal activity
• Salary Paid — Operating activity
• Compensation from earthquake — Extraordinary item
• Interest Paid — Financing activity

Step 3: Final answer.
Hence: \[ \boxed{\text{Compensation received from earthquake loss}} \] Correct option: \[ \boxed{(C)} \]