The approach most companies use to provide information related to the components of other comprehensive income is a
A)second separate income statement.
B)combined income statement of comprehensive income.
C)separate column in the statement of changes in stockholders' equity.
D)footnote disclosure.

Question

Quizplus · Accepted Answer

The most common approach used by companies to provide information related to the components of other comprehensive income is to present a separate column in the statement of changes in stockholders' equity. This allows for a clear presentation of the components of comprehensive income and their impact on stockholders' equity. While footnote disclosure may also be used to provide additional information, it is not the most common approach. A second separate income statement or a combined income statement of comprehensive income are not typically used as they can be confusing and less transparent than presenting the information in a separate column.

The Approach Most Companies Use to Provide Information Related to the Components