Which of the Following Is an Advantage of the Two-Statement

question 88

Multiple Choice

Which of the following is an advantage of the two-statement approach to reporting other comprehensive income (OCI) ?

• A) Net income retains its emphasis as the primary income measure.
• B) Other comprehensive income is more heavily emphasized when presented in its own statement.
• C) Companies apply the tax effects to OCI in total in the one-statement approach but to each individual item in the two-statement approach, thereby enhancing usefulness.
• D) The two-statement approach is significantly less costly to prepare.

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Definitions:

Reduced Inhibitions

A decrease in the psychological restraints that control behaviors, often leading to actions that might be considered impulsive or risky.

Emotional Excess

Experiencing and expressing an overwhelming amount of emotion, which can interfere with an individual's ability to think clearly and act rationally.

Provocations

Actions or words that are intended to arouse or incite a reaction, often anger or irritation, in another person.

Intimacy

The emotional closeness and connectedness between individuals, fostering a sense of warmth and trust.