FASB's Concept of Comprehensive Income

question 80

Multiple Choice

FASB's concept of comprehensive income

• A) excludes transactions that involve the payment of dividends.
• B) requires that all transactions must be shown on the income statement.
• C) has a primary drawback because it allows management to manipulate the income figure to a certain extent.
• D) allows items that are not necessarily under management's control, such as natural disasters, to be shown as an adjustment of retained earnings.

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Definitions:

Urban Riots

Violent disturbances in urban areas, which can be prompted by social, economic, or political grievances, leading to property damage, injuries, and deaths.

Segregation

The enforced separation of different racial groups within a country, community, or institution.

Immigrant Status

Refers to the legal condition or position held by an immigrant in a host country, determining their rights, obligations, and eligibility for citizenship or residency.

Foreign Nationals

Individuals who are citizens of a country other than the one in which they are currently living or visiting.