International Financial Reporting Standards Call for Companies to Mark the Recorded

question 172

Multiple Choice

International Financial Reporting Standards call for companies to mark the recorded values of certain types of assets and liabilities to fair value each period.These unrealized gains and losses are excluded from net income but included in comprehensive income and include all of the following except

• A)Adjustments to pension plan assets.
• B)Gains from foreign currency translation.
• C)Unrealized losses on certain types of investments.
• D)Adjustment to fixed assets for depreciation.

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Definitions:

Net Income

The net income of a company, which is the remaining amount after deducting all costs and taxes from the total revenue.

Sales

The revenue a company earns from selling goods or services in its normal operations.

Operating Expenses

Costs associated with running a business's core operations on a daily basis, excluding costs of goods sold.

Merchandising Companies

Companies that purchase goods in a finished condition and sell them without further processing, making profit through the buying and selling of merchandise.