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According to the FASB's conceptual framework, comprehensive income includes which of the following?

Operating Income Investments by Owners
A) Yes No
B) No Yes
C) No No
D) Yes Yes

1 Answer

3 votes

Final answer:

Comprehensive income includes operating income but not investments by owners, making the correct answer A) Yes No.

Step-by-step explanation:

According to the FASB's conceptual framework, comprehensive income includes all changes in equity during a period except for those resulting from investments by owners and distributions to owners. Thus, comprehensive income would include operating income and other gains and losses that are not included in the net income, such as unrealized gains and losses on available-for-sale securities and foreign currency translation adjustments. Investments by owners are not included in comprehensive income as they represent transactions with owners in their capacity as owners, not performance of the company. Therefore, the correct answer is A) Yes No.

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