Final answer:
Comprehensive income is a change in equity from non-owner sources, like unrealized gains or losses, that are not related to owner investments or distributions. It encompasses a broader set of financial changes than the net income and reflects additional aspects of a company's financial performance.
Step-by-step explanation:
The correct choice is A. Comprehensive income is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. This concept is important as it encompasses not only the net income reported on the income statement but also includes other comprehensive income items such as unrealized gains or losses on securities and foreign currency translation adjustments.
These can include early-stage investors like venture capitalists, reinvesting profits, borrowing through banks or bonds, and selling stock. The choice of financing affects the company's obligations: issuing stock may not require immediate returns to investors, unlike issuing bonds or borrowing, which involves fixed interest payments.