CFA Practice Question

There are 534 practice questions for this study session.

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
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