Question

What is the purpose of reporting comprehensive income?A. To provide a consolidation of the income of the firm's segments.B. To reconcile the difference between net income and cash flows provided from operating activities.C. To provide information for each segment of the business.D. To summarize all changes in equity from non-owner sources.

Answer 1

Answer:

Option D                  

Explanation:

Comprehensive earnings reporting is intended to provide a summary of all adjustments in a corporation's equity arising from acknowledged exchanges as well as other time commercial activities other than dealings with holders in their capacities as shareholders.

If included with the fiscal reports with associated reports and other details, the details generated by disclosing detailed income will assist stakeholders, lenders as well as others in determining the operations of a business, and the duration and extent of potential cash streams of a business.