The FASB's Concept of Comprehensive Income

question 234

Multiple Choice

The FASB's concept of comprehensive income

• A)allows items that are not necessarily under management's control, such as currency translation adjustments, to be shown as an appropriation of retained earnings.
• B)has a primary drawback because it allows management considerable flexibility in determining the net income figure.
• C)excludes transactions that involve the payment of dividends and other transactions affecting owners.
• D)requires that all transactions representing changes in asset and liability accounts must be shown on the income statement.

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Definitions:

Telomeres

The protective caps at the ends of chromosomes that prevent the loss of genetic information during cell division.

Barr Bodies

Inactive X chromosomes present in the nuclei of female cells, visible as dense spots, and used in genetic and gender testing.

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Transcription Activators

Proteins that increase gene expression by binding to DNA and helping RNA polymerase initiate transcription.