Like Profit (Loss), Other Comprehensive Income (Loss) Increases (Decreases) Retained

question 40

True/False

Like profit (loss), other comprehensive income (loss) increases (decreases) retained earnings.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recognizing income in proportion to their ownership percentage.

Cash Dividends

The allocation of a part of a corporation's profits, determined by its board of directors, to a group of its stockholders as cash.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It encompasses net income and other comprehensive income items.

Interest Revenue

Income earned on investments, such as loans and securities, over a period.