Select the Correct Presentation for Other Comprehensive Income on the Financial

question 152

Multiple Choice

Select the correct presentation for other comprehensive income on the financial statements of Puma Company.

• A)
• Puma Company
• Income Statement
• For the Year Ended December 31,20 Y3
• \(\begin{array}{lr}
• \text { Sales } & \$ 625,000 \\
• \text { Cost of goods sold } & 350,000 \\
• \text { Gross profit } & \$ 275,000 \\
• \text { Operating expenses } & 135,000\\\text { Net income } & \$ 140,000 \\
• \text { Other comprehensive income } & \$ 20,000 \\
• \text { Comprehensive income } & \$ 160,000
• \end{array}\)
• B)
• Puma Company
• Statement of Comprehensive Income
• For the Year Ended December 31, \(20 \mathrm { Y } 3\)
• \(\begin{array}{lr}
• \text { Net income } & \$ 140,000 \\
• \text { Other comprehensive income } & 20,000 \\
• \text { Comprehensive income } & \$ 160,000
• \end{array}\)
• C) Both are correct
• D) Neither is correct

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Definitions:

External Factors

Elements outside an organization or individual's control that can impact their performance or decision-making process.

Self-Serving Bias

A common tendency to attribute one's successes to personal qualities and failures to external factors.

Attribution

The act of explaining the causes of behaviors or events, often associating them with personal traits or external situations.

Self-Monitors

Individuals who observe and regulate their behavior in social situations to fit the norms or expectations.