Asked by Carissa Abrams on May 11, 2024
Verified
Which of the following items is included as part of comprehensive income but is not included as part of net income?
A) Gains and losses from sales of property,plant and equipment.
B) Foreign currency translation gains and losses.
C) Income taxes and payroll taxes.
D) Gains and losses from discontinued operations.
Comprehensive Income
The total change in equity for a reporting period, including all revenues, gains, expenses, and losses.
Net Income
The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.
Foreign Currency Translation
Foreign Currency Translation is the process of converting the financial statements of a company into a single currency when it has operations in multiple currencies.
- Identify the elements and computation of comprehensive income.
Verified Answer
LD
Leroy DsouzaMay 18, 2024
Final Answer :
B
Explanation :
Comprehensive income includes items that are not part of net income, such as foreign currency translation gains and losses. Items in choices A, C, and D are all included in net income.
Learning Objectives
- Identify the elements and computation of comprehensive income.