One of the Elements of Financial Statements Is Comprehensive Income

question 50

Multiple Choice

One of the elements of financial statements is comprehensive income.As described in Statement of Financial Accounting Concepts No.6, "Elements of Financial Statements," comprehensive income is equal to

• A)revenues minus expenses plus gains minus losses.
• B)revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners.
• C)revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners plus assets minus liabilities.
• D)none of these.

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Definitions:

Cash Equivalent

Short-term, highly liquid investments that can be easily converted to a known amount of cash.

Liquid Asset

Assets that can be quickly and easily converted into cash without significant loss in value.

Noncash Investing

Transactions involved in investing activities that do not involve immediate cash flow, such as exchanging one asset for another.

Financing Activity

Activities that result in changes in the size and composition of the equity capital and borrowings of the company.