FASB's concept of comprehensive income
A) excludes transactions that involve the payment of dividends.
B) requires that all transactions must be shown on the income statement.
C) has a primary drawback because it allows management to manipulate the income figure to a certain extent.
D) allows items that are not necessarily under management's control, such as natural disasters, to be shown as an adjustment of retained earnings.

Question

Quizplus · Accepted Answer

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, such as dividends.

FASB's Concept of Comprehensive Income