Comprehensive Income Is

question 61

Multiple Choice

Comprehensive income is

• A) considered an appropriation of retained earnings when reported in the stockholders' equity section of the balance sheet.
• B) the result of all events and transactions that affect income during the accounting period that are reported on the income statement.
• C) reporting all items that are not under management's control on the statement of retained earnings.
• D) an all-inclusive approach to income that includes transactions that affect stockholders' equity with the exception of those transactions that affect owners.

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Definitions:

Company-wide Profits

The total earnings of a company after all expenses and taxes have been deducted, across all divisions and product lines.

Profit Centers

Divisions or branches within a company that are treated as separate business units, with their own revenues and expenses.

Division Revenues

The total income generated by a specific division or segment of a company from its operational activities.

Division Profits

The earnings generated by a specific division within a larger company, highlighting its financial performance.