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Multilple choice Comprehensive income can be reported: a)on the income statement. b)in the shareholders’ equity section...

Multilple choice

Comprehensive income can be reported:

a)on the income statement.

b)in the shareholders’ equity section of the balance sheet.

c)on the statement of retained earnings.

d)combined with the income statement.

Solutions

Expert Solution

Correct answer—(b)in the shareholders’ equity section of the balance sheet.

Comprehensive income is income that are unrealized and are included with other comprehensive income.

Comprehensive income is a separate income statement and not a part of regular income statement.

Below given is a format showing presentation of other comprehensive income in shareholder’s section of balance sheet.

Shareholders' equity

Common stock, $10 par value, 100,000 shares authorized, 97,000 shares issued

$            970,000.00

Additional paid-in capital

$            254,997.00

Retained earnings

$         9,587,448.00

Accumulated other comprehensive income:

       Net unrealized loss on available-for-sale securities

$            (25,154.00)

       Unrealized gains from foreign currency translation

$              55,487.00

Total shareholders' equity

$       10,842,778.00

Leave a comment below for any query.

ekkarill92 answered 2 years ago
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