Question: Multiple Answers Define comprehensive income, including its current components and explain why items of other comprehensive income are not reported on the income statement. 1

Multiple Answers Define comprehensive income, including its current components and explain why items of other comprehensive income are not reported on the income statement.

1 .

Comprehensive income is not included in net income because they are non

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cash events that originated in prior periods.

2 .

Comprehensive income represents all changes in the equity of the firm except for those resulting from transactions with owners.

3 .

Comprehensive income includes unrealized gains and losses on available for sale debt securities

,

foreign currency translation adjustments and pension adjustments.

4 .

Comprehensive income is not included in net income due to the low probability of short term cash flow realization, because the events are not part of normal business operations and the changes in these events will result in excessive earnings volatility.

5 .

Comprehensive income includes unrealized gains and losses on equity and debt securities

,

foreign currency transactions and pension adjustments.

6 .

Comprehensive income represents all changes in the equity of the firm except for those resulting from transactions with owners in their capacity as owners. mention correct numbers

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