Which of the following is an advantage of the two-statement approach to reporting other comprehensive income (OCI)?
A) Net income retains its emphasis as the primary income measure.
B) Other comprehensive income is more heavily emphasized when presented in its own statement.
C) Companies apply the tax effects to OCI in total in the one-statement approach but to each individual item in the two-statement approach, thereby enhancing usefulness.
D) The two-statement approach is significantly less costly to prepare.

Question

Quizplus · Accepted Answer

The two-statement approach allows net income to be reported separately, maintaining its emphasis as the primary measure of a company's financial performance.

Which of the Following Is an Advantage of the Two-Statement