Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Comprehensive Income

Financial Accounting

4. Merchandising Operations

Comprehensive Income

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a measure that summarizes the overall past performance of an investment?

Current ratio

Gross profit margin

Comprehensive income

Working capital

Previous problemNext problem

Verified step by step guidance

Understand the concept of comprehensive income: Comprehensive income is a measure that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It summarizes the overall past performance of an investment by incorporating both net income and other comprehensive income items.

Differentiate comprehensive income from other financial metrics: Current ratio, gross profit margin, and working capital are specific financial metrics that focus on liquidity, profitability, and operational efficiency, respectively. They do not summarize the overall past performance of an investment.

Recognize the components of comprehensive income: Comprehensive income includes net income (from the income statement) and other comprehensive income (OCI), which may include items like unrealized gains or losses on investments, foreign currency translation adjustments, and pension adjustments.

Understand the reporting of comprehensive income: Comprehensive income is reported in the financial statements, either as a separate statement or combined with the income statement, to provide a complete picture of an entity's financial performance.

Apply this knowledge to the question: Based on the explanation, comprehensive income is the correct answer because it provides a summary of the overall past performance of an investment, unlike the other options which focus on specific aspects of financial performance.