According to the FASB conceptual framework,the concept of "earnings"
A) includes changes in market values of investments in marketable securities classified as available-for-sale.
B) includes foreign currency translation adjustments.
C) includes gains and losses resulting from the sale of a productive asset to another party in an arm's-length transaction.
D) is the same as comprehensive income.

Question

Quizplus · Accepted Answer

According to the FASB conceptual framework, earnings include gains and losses resulting from the sale of a productive asset to another party in an arm's-length transaction. This refers to the revenue generated from the sale of the asset and the cost of the asset, resulting in a gain or loss. It does not include changes in market values of investments classified as available-for-sale or foreign currency translation adjustments. Additionally, earnings are not the same as comprehensive income, which includes all changes in equity during a period, including non-owner transactions such as unrealized gains on available-for-sale securities.

According to the FASB Conceptual Framework,the Concept of "Earnings