Comprehensive income consists of
A)operating income + other income and losses
B)net income + other adjustments to retained earnings
C)net income + other comprehensive income
D)other comprehensive income + unrealized changes in the value of available for sale securities

Question

Quizplus · Accepted Answer

Comprehensive income involves all changes in equity except for investments by owners and distributions to owners. It includes net income and other comprehensive income, which consists of unrealized gains or losses on available-for-sale securities, gains or losses from pension adjustments, and gains or losses from foreign currency translations. Option A is incorrect because it only includes operating and other income, not all changes in equity. Option B is incorrect because it only includes adjustments to retained earnings, not all changes in equity. Option D is incorrect because it only includes unrealized changes in the value of available-for-sale securities, not all changes in equity.

Comprehensive Income Consists of