- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 18. Understanding Income Statements
- Subject 7. Comprehensive Income
CFA Practice Question
True or False? Comprehensive income includes all revenues, expenses, gains, losses, and prior period adjustments.
Correct Answer: False
Comprehensive income is the change in a company's equity from sources other than owners during a period. It includes net income, changes in unrealized investment gains and losses, and other items affecting equity. Net income includes all revenues, expenses, gains, and losses, except for prior period adjustments.
User Contributed Comments 4
| User | Comment |
|---|---|
| blcross | Since comprehensive income includes net income, and net income includes all revenues etc, shouldn't this statement be true? |
| tractor | No. except for prior period adjustments. |
| Htoon | If we add prior perior adjustments, it will happen we add the same amount two times. |
| choas69 | CI = OCI + NI |