Which of the Following Is True of Comprehensive Income

question 116

Multiple Choice

Which of the following is true of comprehensive income?

• A)All items included in comprehensive income enter into the determination of net income.
• B)Payment of dividend is not included in the determination of comprehensive income, even though it results in a decrease in total stockholders' equity.
• C)Comprehensive income includes company's change in total stockholders' equity from all sources including owners' investments.
• D)Comprehensive income cannot be combined with a traditional income statement into a combined statement of comprehensive income for reporting purposes.

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Definitions:

Effort Justification

A phenomenon whereby individuals rationalize the effort and resources they put into achieving a goal by increasing their appreciation or valuation of the goal, especially when the effort was substantial.

Belief Perseverance

The psychological phenomenon where individuals cling to their initial views or explanations despite the confrontation with new, contradictory information.

Social Psychology

The examination of individuals' thoughts, emotions, and actions within societal settings through scientific methods.

Belief Perseverance

The tendency for people to hold on to their beliefs even in the face of contradictory evidence.