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.

---

Definitions:

Dividend Payouts

The portion of a company's earnings that is distributed to shareholders in the form of cash or additional shares.

Accounts Receivable

Outstanding payments from customers to a firm for received goods or services that remain unpaid.

Financial Plan

A comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values, and withdrawal plans.