Which Of The Following Assets Or Transactions Is An Element Of Comprehensive Income?

C) Sales revenue. Answer C is correct. Comprehensive income includes all components of net income and other comprehensive income. Sales revenue is a component of net income and thus is considered a component of comprehensive income.

Which of the following is a component of comprehensive income?

The components of comprehensive income are: Net Income, Unrealized gain/loss on AFS securities, foreign currency translation adjustment, unrecognized gain/loss on pension benefits, and deferred gain/loss on certain hedging transactions.

Which one of the following is an example of other comprehensive income?

Examples of Other Comprehensive income are: Unrealized gain or loss on bonds. Unrealized gain or loss on investments that are available for sale. Foreign currency translation gains or loss. Pension plans gain or losses.

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Which of the following describes the statement of comprehensive income?

The statement of comprehensive income is a financial statement. The net income is the result obtained by preparing an income statement. Whereas, other comprehensive income consists of all unrealized gains and losses on assets that are not reflected in the income statement.

Which of the following items is included in accumulated other comprehensive income?

Accumulated other comprehensive income (OCI) includes unrealized gains and losses reported in the equity section of the balance sheet that are netted below retained earnings. Other comprehensive income can consist of gains and losses on certain types of investments, pension plans, and hedging transactions.

What are the two elements of statement of comprehensive income?

Both cover the same time period, but the statement of comprehensive income has two major sections: net income (derived from the income statement) and other comprehensive income (e.g., hedges). At the end of the statement is the comprehensive income total, which is the sum of net income and other comprehensive income.

What are the three major elements of the statement of comprehensive income?

The income statement shows the business’s income, expenses, gains, and losses. The end product of these transactions is net income or loss.

What are the 4 components of other comprehensive income?

In business accounting, other comprehensive income (OCI) includes revenues, expenses, gains, and losses that have yet to be realized.

What is the purpose of other comprehensive income?

The purpose of the statement of profit or loss and other comprehensive income (OCI) is to show an entity’s financial performance in a way that is useful to a wide range of users so that they may attempt to assess the future net cash inflows of an entity.

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What is other income in accounting?

Other income is income derived from activities unrelated to the main focus of a business. Other types of income that are commonly classified as other income are interest income, gains on the sale of assets, and gains from foreign exchange transactions.

What is the other name of statement of Comprehensive Income?

Statement of Comprehensive Income is the same as Statement of Profit or Loss and Other Comprehensive Income. The name was changed by IASB. Noted: IASB had changed the name of Statement of Comprehensive Income to Statement of Profit and Loss and Other Comprehensive Income in June 2011.

What is the difference between Comprehensive Income and income statement?

Comprehensive income includes realized and unrealized income, such as unrealized gains and losses from the other comprehensive income statement, and therefore is a more detailed view of a company’s net income, which is not fully captured on the income statement.

Is comprehensive income on the balance sheet?

Other comprehensive income is shown on a company’s balance sheet. It is similar to retained earnings, which is impacted by net income, except it includes those items that are excluded from net income.

What is statement of financial position?

The statement of financial position also known as a Balance Sheet represents the Assets, Liabilities and Equity of a business at a point in time. For example: Assets include cash, stock, property, plant or equipment – anything the business owns.

Which of the following is an element of the financial position of an entity?

The elements of financial statements related to the measurement of financial position are assets, liabilities, and equity.

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