Which of the following is not an acceptable way of reporting a company's comprehensive income?
A)on the face of the income statement
B)in a separate statement of comprehensive income
C)in the statement of changes in stockholders' equity
D)in the statement of retained earnings

Question

Quizplus · Accepted Answer

Reporting comprehensive income on the statement of retained earnings is not an acceptable way of reporting a company's comprehensive income. The statement of retained earnings only shows changes in the company's retained earnings account, which includes net income and dividends, but does not include other items such as unrealized gains/losses on available-for-sale securities or foreign currency translation adjustments. The other options, A, B, and C, are all acceptable ways of reporting comprehensive income.

Which of the Following Is Not an Acceptable Way of Reporting