Which of the Following Is/are True

question 17

Multiple Choice

Which of the following is/are true?

• A)Comprehensive income equals the net amount of revenues, expenses, gains, and losses during an accounting period.
• B)Authoritative guidance classifies revenues and expenses arising from a firm's core business as components of net income.
• C)Net income includes gains and losses from sales or exchanges of assets or settlements of liabilities related incidentally or peripherally to the firm's core business.
• D)Authoritative guidance classifies gains and losses from the remeasurement of certain assets and liabilities as either net income or other comprehensive income.
• E)All of the above answer choices are true.

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Definitions:

Payback Period

The length of time it takes for an investment to generate an amount of cash flow equal to the initial amount invested.

NPV

Net Present Value, a financial metric used to evaluate the profitability of an investment or project, calculated by discounting the expected future cash flows to present day values and subtracting the initial investment cost.

Discounted Payback Period

The time required to recoup the cost of an investment while accounting for the time value of money, typically used in capital budgeting to assess profitability.

After-Tax Cash Inflows

The net cash that a business generates after accounting for all taxes.