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:

Net Operating Income

A company's earnings derived from its regular business operations, excluding income from investments and after expenses have been deducted.

Price Hike

An increase in the price of goods or services.

Value-Based Pricing

A pricing strategy where the price of a product or service is set based on the perceived value to the customer rather than the cost of production.

Useful Life

The estimated duration of time a fixed asset is expected to be useful and productive for its intended purpose.