A statement of comprehensive income _____________________.

Question

Quizplus · Accepted Answer

A statement of comprehensive income prepared according to GAAP will show revenue when it accrues, meaning when it is earned regardless of when the payment is received. The statement also includes expenses when they are incurred, not just when they are paid off in cash. It is not a snapshot of performance on a specific date and it may or may not exclude accrued taxes payable, depending on the accounting treatment chosen. While it provides important information, it is not an accurate representation of a firm's net cash flows, as it includes non-cash items such as depreciation and amortization.

A Statement of Comprehensive Income _____________________