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Under FASB Statement of Financial Accounting Concepts #5, which of the following items would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles?
Suggested Answer: A
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Choice 'a' is correct. Unrealized loss on investments in marketable equity securities available for sale would cause earnings to differ from comprehensive income for an enterprise in an industry not having specialized accounting principles.
Rule: FAC 5 defines 'earnings' for a period to exclude certain cumulative accounting adjustments and other non-owner changes in equity (such as changes in market value of marketable securities available for sale) that are included in comprehensive income for a period.
9 comments · newest first
DE
Desire
11 months ago
Not sure about D, seems a bit tricky.
JA
Jamey
12 months ago
I agree with A, it makes the most sense here.
HE
Helga
12 months ago
Wait, isn't C just a regular loss?
AD
Adell
12 months ago
I think B could also be a contender.
IV
Ivory
1 year ago
A is definitely the right choice.
CA
Cassi
1 year ago
I'm a bit confused by the different caching and capacity options. I'll need to review the details of each one to make sure I understand the differences and can pick the right strategy.
RO
Ronna
1 year ago
I'm a little confused by this question. The code fragment doesn't seem to provide enough information for me to confidently select the right answer. I'll need to review my notes and try to apply the concepts to this specific scenario.
GL
Gladys
1 year ago
Hmm, I'm a bit confused by the number of options here. I'll need to carefully review each one to determine the best approach.
MA
Mabel
1 year ago
Okay, I think I've got it. The key is to remove the undesired headers, so I'll go with option C and enter them in the 'Response Header Erase' field.