What is the definition of comprehensive income?

• The total revenue generated by a company in a fiscal year.

• The change in equity of a company during a period from transactions and other events, excluding those resulting from investments by owners and distributions to owners.

• The net profit after taxes and expenses.

• The total cash flow of a company.

Which of the following is a component of an income statement?

• Assets

• Liabilities

• Revenue

• Equity

How is net income calculated?

• Total revenue minus total expenses

• Total assets minus total liabilities

• Total cash inflow minus total cash outflow

• Total equity minus total debt

What does "other comprehensive income" include?

• Regular sales revenue

• Gains and losses from foreign currency translation

• Daily operational expenses

• Employee salaries

Why is comprehensive income important?

• It provides a detailed view of a company's cash flow.

• It offers insights into the total change in equity, including all non-owner changes.

• It helps in calculating the company's tax obligations.

• It determines the company's market share.

Which of the following is NOT a component of an income statement?

• Revenue

• Expenses

• Net income

• Cash flow

What is the primary purpose of an income statement?

• To show the financial position of a company at a specific point in time.

• To report a company's financial performance over a specific accounting period.

• To list all assets and liabilities.

• To calculate the company's tax liability.

Which of the following is included in other comprehensive income?

• Interest income

• Dividends received

• Unrealised gains and losses on available-for-sale securities

• Cost of goods sold

What is the formula for calculating net income?

• Net income = Total assets - Total liabilities

• Net income = Total revenue - Total expenses

• Net income = Total equity - Total debt

• Net income = Total cash inflow - Total cash outflow

How does comprehensive income differ from net income?

• Comprehensive income includes all changes in equity, while net income only includes operational results.

• Comprehensive income is calculated monthly, while net income is calculated annually.

• Comprehensive income is a cash-based measure, while net income is accrual-based.

• Comprehensive income is only used by non-profit organisations.