All of the Following Statements Regarding Comprehensive Income Are True

question 66

Multiple Choice

All of the following statements regarding comprehensive income are true, except:

• A)comprehensive income was created to be an all-inclusive measure of performance.
• B)comprehensive income is not a requirement for public companies under IFRS.
• C)comprehensive income captures all transactions and events, even those excluded from net income.
• D)comprehensive income equals the sum of net income and other comprehensive income.

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Definitions:

Depreciation Expense

The monetary value reduction in an asset's cost over its useful life due to wear and tear, age, or obsolescence.

Book Value

The net value of an asset according to its balance sheet account balance, calculated as the original cost minus accumulated depreciation.

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Fair Value

The estimated market value of an asset or liability, reflecting the price it would fetch in an orderly transaction between market participants at the measurement date.