Comprehensive Income Is

question 87

Multiple Choice

Comprehensive income is:

• A) used to determine earnings per share.
• B) used to determine net income.
• C) not used to determine net income or earnings per share.
• D) used to determine net income or earnings per share.

---

Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends, but rather kept by the company for reinvestment in its operations or to pay debt.

Closing Process

The accounting procedures used to close out business accounts at the end of an accounting period.

Income Summary Account

A temporary ledger account used during the closing process that accumulates revenues and expenses before transferring the net amount to the capital or retained earnings account.

Net Income

The sum of money a company retains as profit after all financial obligations and taxes are deducted from its total income.