The FASB's Concept of Comprehensive Income

question 86

Multiple Choice

The FASB's concept of comprehensive income

• A)excludes transactions that involve the payment of dividends.
• B)requires that all transactions must be shown on the income statement.
• C)has a primary drawback because it allows management to manipulate the income figure to a certain extent.
• D)allows items that are not necessarily under management's control,such as natural disasters,to be shown as an adjustment of retained earnings.

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Definitions:

Coagulation

The process by which blood changes from a liquid to a gel, forming a blood clot, which is an essential mechanism to prevent excessive bleeding when the vascular system is injured.

Fibrinolysis

The biological process by which fibrin clots, the products of coagulation, are broken down, thereby preventing blood clots from growing and becoming problematic.

Intrinsic Pathway

A series of steps in blood coagulation that is initiated by internal trauma, leading to the activation of Factor X independent of tissue factor.

Extrinsic Pathway

A pathway for blood coagulation that is initiated by external trauma leading to blood escaping from the vascular system.