The shareholders' equity section of Village Catering Incorporated's balance sheet disclosed the following amounts: Dec. 31, 2017
Question:
The shareholders' equity section of Village Catering Incorporated's balance sheet disclosed the following amounts:
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated other comprehensive income | $2,816,000 | $2,271,500 |
Additional disclosures indicated that the only component included in comprehensive income beyond net income resulted from foreign currency translation adjustments. Net income totaled $12,065,500 and $7,611,500 for the years ending December 31, 2017 and December 31, 2016, respectively.
What caused the accumulated other comprehensive income balance to increase during 2017?
A. | Exchange rate fluctuations resulted in gains | |
B. | Off-balance-sheet financing occurred | |
C. | Exchange rate fluctuations resulted in losses | |
D. | Investments in variable interest entities increased |
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy