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 NOT included in a statement of comprehensive income?

Foreign currency translation adjustments

Unrealized gains and losses on cash flow hedges

Dividends paid to shareholders

Unrealized gains and losses on available-for-sale securities

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the purpose of a statement of comprehensive income. It is a financial statement that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners (e.g., dividends).

Step 2: Review the components typically included in comprehensive income. These include items such as foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and unrealized gains and losses on available-for-sale securities.

Step 3: Recognize that dividends paid to shareholders are distributions to owners and are not part of comprehensive income. Instead, dividends are reported in the statement of changes in equity or cash flow statement.

Step 4: Compare the given options to the definition of comprehensive income. Foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and unrealized gains and losses on available-for-sale securities are all included in comprehensive income.

Step 5: Conclude that dividends paid to shareholders are NOT included in the statement of comprehensive income because they represent a distribution to owners rather than a change in equity from non-owner sources.