Which of the Following Is Not an Acceptable Way of Displaying

question 82

Multiple Choice

Which of the following is not an acceptable way of displaying the components of other comprehensive income?

• A) Combined statement of retained earnings
• B) Second income statement
• C) Combined statement of comprehensive income
• D) All of these answer choices are acceptable.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Variable Expense Ratio

The proportion of variable expenses to total sales, indicating how variable costs change with changes in sales volume.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. This margin helps determine how each unit sold contributes to fixed costs and profits.