Asked by Nastassja Locklear on Jun 04, 2024
Verified
Comprehensive income is an important concept in accounting because it represents
A) all changes in equity
B) changes in equity from nonowner sources
C) changes in liabilities minus assets
D) the impact on equity of all transactions
Comprehensive Income
The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.
Equity
The value of an owner's interest in a property or business, determined by subtracting liabilities from assets.
- Identify and interpret the facets and necessity of comprehensive income.
Verified Answer
ZK
Zybrea KnightJun 08, 2024
Final Answer :
B
Explanation :
Comprehensive income includes all changes in equity from nonowner sources, such as unrealized gains and losses on available-for-sale securities, foreign currency translation adjustments, and pension adjustments. It does not include all changes in equity as some changes may be from owner sources. Therefore, the most appropriate answer is B.
Learning Objectives
- Identify and interpret the facets and necessity of comprehensive income.
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