Both USGAAP and IFRS Require the Presentation of an Income Statement

question 61

Multiple Choice

Both U.S.GAAP and IFRS require the presentation of an income statement and the presentation of the items of Other Comprehensive Income.U.S.GAAP permits the following reporting format(s) except for:

• A)a single statement of comprehensive income that shows all the changes in net assets except from transactions with owners.
• B)a two-statement presentation that includes an income statement and a separate statement of comprehensive income.
• C)a separate display of the items comprising Other Comprehensive Income within a statement of changes in shareholders' equity.
• D)a separate display of the items comprising Other Comprehensive Income within a statement of retained earnings.
• E)All of the above are acceptable reporting formats.

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Definitions:

Hot Climates

Refers to regions of the world characterized by high temperatures for most of the year.

Colder Climates

Regions with lower average temperatures, often characterized by longer winters and shorter summers, affecting living conditions and lifestyle.

Basal Metabolic Rate

The pace at which energy is consumed by the body in a resting state to support crucial processes such as respiration and maintaining body heat.

Energy Expenditure

The total amount of energy used by the body, encompassing basal metabolic rate, physical activity, and energy used in digestion and absorption of food.