Which of the Following Is an Advantage of the Two-Statement

question 88

Multiple Choice

Which of the following is an advantage of the two-statement approach to reporting other comprehensive income (OCI) ?

• A) Net income retains its emphasis as the primary income measure.
• B) Other comprehensive income is more heavily emphasized when presented in its own statement.
• C) Companies apply the tax effects to OCI in total in the one-statement approach but to each individual item in the two-statement approach, thereby enhancing usefulness.
• D) The two-statement approach is significantly less costly to prepare.

---

Definitions:

Gunnite Slack Adjusters

A type of slack adjuster used in air brake systems of commercial vehicles, employing a slack adjustment mechanism to maintain brake efficiency.

Clearance-Sensing Adjustment

A method or mechanism used to automatically adjust the clearances between components, ensuring optimal performance and preventing wear.

Automatic Slack Adjusters

Devices in air brake systems that automatically maintain the correct distance between the brake drum and brake lining to ensure effective braking.

Highway Tractors

Trucks designed primarily for the transportation of goods over long distances, characterized by a powerful engine and a cab for the driver.