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:

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and salaries.

Statement Of Income

This financial document reports a company's financial performance over a specific period, showing revenues, expenses, and net income.

Classifying Expenses

The process of categorizing expenses in financial records to accurately represent the nature of each expenditure.

Administrative Expenses

Overheads and costs relating to the general operation of a business, including salaries of non-sales personnel, rent, and utilities.