The statement, net income should reflect all items that affected the net increase or decrease in stockholders' equity during the period is consistent with which of the following concepts of income?
A) Economic
B) All inclusive
C) Current operating performance
D) Money

Question

Quizplus · Accepted Answer

The concept of all inclusive income posits that net income should include all items that have affected the net increase or decrease in stockholders' equity during the period. This means that all gains, losses, revenues, expenses, and other similar items must be accounted for in computing income. Therefore, this statement is consistent with the all inclusive concept of income.

The Statement, Net Income Should Reflect All Items That Affected