Which statement is true about the computation of net income and comprehensive income?
A) They are the same under either reporting alternative.
B) The one statement format provides a higher net income than the two consecutive statements format.
C) The two consecutive statements format provides a higher net income than the one statement format.
D) Net income always equals comprehensive income under the one statement format.

Question

Quizplus · Accepted Answer

Net income and comprehensive income are computed the same way regardless of whether a one statement or two statement format is used. The difference lies in presentation, not in the computation of the amounts.

Which Statement Is True About the Computation of Net Income