Total recognised income and expense is also defined as:
A) Net profit reported in the income statement.
B) Net operating cash flows reported on the cash flow statement.
C) Net profit reported on the income statement, plus total of all income and expenses recognised directly in equity.
D) Net operating cash flows reported on the cash flow statement, plus total of all income and expenses recognised directly in equity.
E) Net operating cash flows reported on the cash flow statement, plus net profit reported in the income statement.

Question

Quizplus · Accepted Answer

Total recognised income and expense is the sum of net profit reported on the income statement and the total of all income and expenses recognised directly in equity. This is because income and expenses recognised directly in equity are not included in the income statement but are still part of the company's total income and expenses.

Total Recognised Income and Expense Is Also Defined As