Which of the following statements is not true about distributions to owners?
A)Distributions to owners represent a decrease in equity.
B)Distributions to owners result from incurring liabilities.
C)Distributions to owners are included in other comprehensive income.
D)Distributions to owners result from rendering services.

Question

Quizplus · Accepted Answer

Distributions to owners are not included in other comprehensive income. Other comprehensive income includes items such as unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and pension adjustments. Distributions to owners are typically made in the form of dividends or share repurchases, and represent a decrease in equity. They may result from profits earned by the company or from capital contributions made by owners, but do not result from incurring liabilities or rendering services.

Which of the Following Statements Is Not True About Distributions