CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Jason Corporation's statement of stockholders' equity reported net income of $988,000, foreign currency translation adjustments of $26,000, and cash dividends on preferred stock of $30,000 and on common stock of $65,000. Jason's comprehensive income for the period was ______.

A. $949,000
B. $962,000
C. $1,014,000
Correct Answer: C

Comprehensive income includes all changes in a company's equity during a period from sources other than owners. In this case, net income and foreign currency translation adjustments are included in comprehensive income for the period, which was $1,014,000 ($988,000 + $26,000). The foreign currency translation adjustment is a positive amount that is added to net income.

User Contributed Comments 10

User Comment
Jolen why does the dividend not get decreased?
MattNYC dividends comes out of Retained Earnings, not Comprehensive Income
rethan Does the cash for dividends for preferred stock also come from retained earnings?
apiccion Yeah but it would be included in net income.
Oarona Remember that comphensive income includes changes in equity from sources other than OWNERS
YOUCANDOIT Comprehensive income includes => MUUF
M.inimum Pension Liabilities
U.nrealized Gains/Losses from hedges
U.nrealized Gains/Losses from available-for-sale securities
F.oreign Transaction adjustments
poomie83 how would u indicate negative fctr?
gill15 I was just about to say where the hell did you get MUUF from....its not even a word...

but now that I have posted this message I will never forget it...hilarious..
majesty YOUCANDOIT: this is OCI. CI = NI + OCI
Shaan23 Listen to Majesty. You guys are making this too complicated


OCU is composed of whats in the MUUF acronym above. His first unrealized gain/loss from hedges is incorrect though...its not just hedges but any derivative contract.
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