A statement of comprehensive income _____________________.
A) Measures performance as a snapshot on a specific date.
B) Prepared according to GAAP, will show revenue when it accrues.
C) Excludes accrued taxes payable.
D) Includes expenses only when they are ultimately paid off in cash.
E) Is an accurate representation of a firm's net cash flows.

Question

Quizplus · Accepted Answer

The statement of comprehensive income includes revenues when they are earned, not necessarily when cash is received, in accordance with the accrual basis of accounting as required by Generally Accepted Accounting Principles (GAAP).

A Statement of Comprehensive Income _____________________