Which of the Following Statements Best Describes the Statement of Comprehensive

question 87

Multiple Choice

Which of the following statements best describes the statement of comprehensive income?

• A)It provides information about the financial position of an entity at a specific point in time.
• B)It measures economic events that involve non-owners but affect equity.
• C)It summarizes the changes to shareholders' equity during a period.
• D)It is an extension of the balance sheet.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own operations, without direct payment but with foregone opportunities.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, and materials, among others, involved in the production of goods or services.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choice.

Implicit Costs

Indirect, non-out-of-pocket expenses which represent the opportunity costs of using resources owned by the firm for its operations.