A Difference Between the All-Inclusive and the Comprehensive Income Approaches

question 7

Multiple Choice

A difference between the all-inclusive and the comprehensive income approaches to profit measurement is that:

• A) the all-inclusive approach is broader than the comprehensive income approach
• B) the two approaches have different treatments for prior-period adjustments
• C) the comprehensive income approach includes all recognised changes in the carrying amount of assets and liabilities in the profit calculation
• D) all are differences

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Definitions:

Memory

The ability to store, retain, and subsequently retrieve information.

Internal Locus

Internal Locus refers to a belief that individuals control their own destiny and outcomes are a result of their actions rather than external factors.

External Locus

A belief system or psychological orientation that attributes success or failure to external factors beyond one's control.

Control

In management and organizational contexts, refers to the processes and systems in place that ensure activities and outputs meet the organization’s objectives and standards.