Information about comprehensive income is useful to external users for all of the following purposes except
A)evaluating management's performance
B)examining cash flows for the current period
C)predicting future income
D)assessing the risk of lending to the company

Question

Quizplus · Accepted Answer

Comprehensive income does not provide information about cash flows for the current period. It includes non-cash items such as unrealized gains and losses on investments or changes in pension plans. However, external users can use comprehensive income to evaluate management's performance, predict future income, and assess the risk of lending to the company.

Information About Comprehensive Income Is Useful to External Users for All