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FASB's conceptual framework explains both financial and physical capital maintenance concepts. Which capital maintenance concept is applied to currently reported net income, and which is applied to comprehensive income?
Suggested Answer: C
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Choice 'c' is correct. Financial capital - Financial capital.
Financial capital maintenance is considered to be an element of both 'currently reported net income' and 'comprehensive income.' This was a rare instance in which this type of information was asked on the exam.
9 comments · newest first
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Viola
11 months ago
Just to clarify, net income = financial, comprehensive income = physical.
RO
Robt
12 months ago
Wait, really? I always thought it was the other way around!
CA
Carma
12 months ago
I thought comprehensive income was about physical capital maintenance?
KE
Keena
12 months ago
Totally agree, that’s how it works!
BE
Benedict
1 year ago
Net income uses the financial capital maintenance concept.
CA
Cammy
1 year ago
Okay, I've got this. The Junction object is the way to go here. It will let us create the many-to-many relationship we need.
SH
Sheron
1 year ago
I think the answer is C. Full overwrite protection seems like the safest option to minimize the risk of data loss.
MA
Maurine
1 year ago
This question looks straightforward, I think I can handle it.
TE
Tegan
1 year ago
For some reason, "allow RTSP" rings a bell, but I can't pinpoint exactly how it influences multicast streaming in a wireless setup.