Comprehensive Income Can Be Displayed to Users of Financial Statements

question 24

Multiple Choice

Comprehensive income can be displayed to users of financial statements in which of the following way(s) :

• A)Only as a second income statement.
• B)As a single income statement that includes both the components of net income and the components of other comprehensive income.
• C)As a footnote disclosure to the financial statements.
• D)Either as a second income statement or as a single income statement that includes both the components of net income and the components of other comprehensive income.

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Definitions:

Acquisition

Taking over another corporation by buying out its equity or assets.

Fair Value

The approximate value for which an asset or liability might be exchanged in an equitable deal between consenting parties, excluding scenarios of compelled or liquidation sales.

Subsidiary Consolidated

A process where the financial statements of a subsidiary are integrated with those of its parent company for reporting purposes, treating the two entities as a single economic entity.

Acquisition Accounting

The method used in accounting for the purchase of one company by another, which involves consolidating the financial statements of both companies.