Asked by Jociee Anallam on May 21, 2024
Verified
Which of the following is not an acceptable way of reporting a company's comprehensive income?
A) on the face of the income statement
B) in a separate statement of comprehensive income
C) in the statement of changes in stockholders' equity
D) in the statement of retained earnings
Statement of Comprehensive Income
A financial statement that shows all changes in equity during a period, including items not reflected in the net income.
Income Statement
A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses.
- Ascertain and discuss the features and significance of comprehensive income.
Verified Answer
PA
Pradeep AgrawalMay 21, 2024
Final Answer :
D
Explanation :
Reporting comprehensive income on the statement of retained earnings is not an acceptable way of reporting a company's comprehensive income. The statement of retained earnings only shows changes in the company's retained earnings account, which includes net income and dividends, but does not include other items such as unrealized gains/losses on available-for-sale securities or foreign currency translation adjustments. The other options, A, B, and C, are all acceptable ways of reporting comprehensive income.
Learning Objectives
- Ascertain and discuss the features and significance of comprehensive income.
Related questions
Why Did FASB Decide It Was Necessary to Require the ...
Other Comprehensive Income Items May Be Reported at Their A)I ...
When Is a Company Not Required to Report Comprehensive Income ...
Comprehensive Income Is an Important Concept in Accounting Because It ...
How May a Corporation Report Its Types of Comprehensive Income ...