The FASB's Concept of Comprehensive Income

question 234

Multiple Choice

The FASB's concept of comprehensive income

• A)allows items that are not necessarily under management's control, such as currency translation adjustments, to be shown as an appropriation of retained earnings.
• B)has a primary drawback because it allows management considerable flexibility in determining the net income figure.
• C)excludes transactions that involve the payment of dividends and other transactions affecting owners.
• D)requires that all transactions representing changes in asset and liability accounts must be shown on the income statement.

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Definitions:

Executive Office

A branch of government responsible for enforcing laws and managing the administration of public policy, typically headed by the President or Prime Minister.

President

The elected head of state and government in a republic, particularly referring to the President of the United States.

Agencies

Organizations or bodies established by the government to perform specific functions, often involved in administering policy and regulation in various areas.

Unitary Executive Theory

A concept in constitutional law that suggests the President possesses the power to control the entire executive branch fully.