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

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Multiple Choice

A company's total return to shareholders consists of which of the following?

Net income plus other comprehensive income

Retained earnings only

Dividends paid to shareholders

Net income only

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Verified step by step guidance

Understand the concept of 'total return to shareholders': This refers to the overall financial benefit shareholders receive from their investment in a company, which includes both direct payments (like dividends) and changes in the value of their equity (such as retained earnings and comprehensive income).

Break down the components: Net income represents the company's profit after expenses, taxes, and costs. Other comprehensive income includes items not included in net income, such as unrealized gains or losses on investments, foreign currency translation adjustments, and pension adjustments.

Analyze the options: Retained earnings are the portion of net income that is not distributed as dividends but reinvested in the company. Dividends are direct payments to shareholders. Net income alone does not account for other comprehensive income or dividends.

Combine the relevant components: The total return to shareholders includes net income and other comprehensive income, as these represent the full scope of financial benefits accruing to shareholders.

Conclude the correct answer: Based on the analysis, the total return to shareholders consists of 'Net income plus other comprehensive income,' as this encompasses both direct and indirect financial benefits.