Comprehensive Income Consists of

question 37

Multiple Choice

Comprehensive income consists of

• A)operating income + other income and losses
• B)net income + other adjustments to retained earnings
• C)net income + other comprehensive income
• D)other comprehensive income + unrealized changes in the value of available for sale securities

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Definitions:

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank, commonly used in international trade.

Cash Discount

A reduction in the invoice price offered by a seller to encourage early payment by the buyer.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Extension

Credit extension is the process by which a lender provides funds or permits a borrower to purchase goods or services now with the promise to pay in the future.