Comprehensive income as defined by the FASB
A)must be reported on the face of the income statement.
B)includes all changes in equity during a period except those resulting from investments by and distributions to owners.
C)is the net change in owners' equity for the period.
D)means the same as net income.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

Comprehensive income, as defined by the FASB, includes all changes in equity during a period except those resulting from investments by and distributions to owners. It is not required to be reported on the face of the income statement and is a broader concept than net income. Therefore, option B is correct. Option A is incorrect because comprehensive income need not be reported on the face of the income statement. Option C is incorrect because comprehensive income is not equal to the change in owners' equity. Option D is incorrect because comprehensive income is a broader concept than net income. Option E is incorrect because option B is the correct answer.

Comprehensive Income as Defined by the FASB