Comprehensive Income Includes All Changes in Equity During a Period

question 122

Multiple Choice

Comprehensive income includes all changes in equity during a period EXCEPT

• A) gains and losses from discontinued operations.
• B) unrealized gains and losses on available for sale securities.
• C) those resulting from investments by owners and distributions to owners.
• D) gains and losses from irregular items.

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Definitions:

Price-taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its product or service.

Competitive Price-searcher Firm

A business that operates in a market where firms have some degree of control over the prices they charge, often because of product differentiation.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty.

Competitive Price-searcher Market

A market structure where firms have some control over the pricing of their products because their products are differentiated, but there is intense competition due to low entry barriers.