Statement of Comprehensive Income graded A+ and with accurate answers

What is the purpose of reporting comprehensive income? A. To summarize all changes in equity from nonowner sources. B. To reconcile the difference between net income and cash flows provided from operating activities. C. To provide a consolidation of the income of the firm's segments. D. To provide information for each segment of the business. - ANSA. To summarize all changes in equity from nonowner sources. The purpose of comprehensive income is to show all changes to equity, including changes that currently are not a required part of net income. Comprehensive income reflects all changes from owner and nonowner sources. The other comprehensive income items are: unrealized G/L on AFS securities, unrealized G/L on pension costs, foreign currency translation adjustments, and unrealized G/L on certain derivative transactions. Under FASB U.S. GAAP, which of the following items would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles? A. Unrealized loss on investments in noncurrent marketable equity securities. B. Unrealized loss on investments in current marketable equity securities. C. Loss on exchange of similar assets. D. Loss on exchange of dissimilar assets. - ANSA. Unrealized loss on investments in noncurrent marketable equity securities. Unrealized gains and losses on securities available for sale are among the few items that appear in comprehensive income but not in earnings. Only SAS can be noncurrent. Assuming the current securities are classified as trading securities, then that unrealized loss is included in earnings. This is a change in owners' equity that is not included in earnings and is not the result of a transaction with owners. It is an "other" comprehensive income item. "Other" refers to other than net income, which is the largest component of comprehensive income. The remaining items are recognized in income. A company reports the following information as of December 31: Sales revenue $800,000 Cost of goods sold 600,000 Operating expenses 90,000 Unrealized holding gain on the available-for-sale securities, net of tax 30,000 What amount should the company report as comprehensive income as of December 31? A. $30,000 B. $110,000 C. $140,000 D. $200,000 - ANSC. $140,000 Comprehensive income (CI) is the sum of net income (NI) and other comprehensive income (OCI). In this case, NI = $110,000 ($800,000 sales - $600,000 CGS - $90,000 expenses). The unrealized holding gain is an item of OCI. There are four types of OCI items in all. This firm has only one of them. Thus, CI = $110,000 NI + $30,000 OCI = $140,000. The accumulated other comprehensive income (AOCI) beginning balance for the current year was $6,000 dr. Net income for the period is $21,000. During the year the following two other comprehensive income items were recognized: foreign currency translation loss, $2,000 and unrealized gain on securities available for sale, $9,000. What amount is reported for comprehensive income (CI) for the year, and what is the ending AOCI balance? CI AOCI $7,000 $1,000 cr. $28,000 $1,000 cr. $21,000 $7,000 cr. $28,000 $6,000 dr. - ANS$28,000 $1,000 cr.