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

---

Definitions:

World's Population

The total number of people currently living on Earth.

LDCs

LDCs, or Least Developed Countries, are countries that have been classified by the UN due to their low GDP per capita, weak human assets, and high degree of economic vulnerability.

NICs

Newly Industrialized Countries, nations that have recently experienced rapid industrial growth and show signs of moving from a mainly agricultural to an industry and manufacturing-based economy.

Net National Savings Rate

A measure of the total savings of an economy after taking into account depreciation, expressed as a percentage of Gross National Product (GNP).