Question

What are some unusual account in accounting that might result in new and unique activity?

Answer 1

From time to time accounting records may present unusual account balances. For example, a customer may have a credit balance in accounts receivable or a vendor may have a debit balance in accounts payable.

Some items occurring on income statements are reported separately from normal income, because they are considered irregular and nonrecurring. Special considerations are given to so-called unusual or infrequent items to provide clarity about special or rare circumstances to investors or regulators about a firm's current and/or future financial performance. Examples of unusual or infrequent items include gains or losses from a lawsuit; losses or slowdown of operations due to natural disasters; restructuring costs; costs associated with acquiring another business; and plant shutdown costs.

Result in new activity:- Some unusual items are also categorized as discontinued operations or an adjustment due to changing accounting methods.

The financial information that relates to the account holder such as their credit score, or the estimated time it will take to completely pay off a debt via instalment payments. Alerts and notices to the account holder may also appear on these statements, calling attention to matters with the account that need to be addressed, such unusual charges that should be reviewed and verified.