Which of these is correct? An advantage of the comprehensive income approach to profit measurement is:
A) profit is determined conceptually not arbitrarily
B) no revenue or expense items bypass the income statement
C) the method gives the most useful profit for estimating future profit performance
D) A and B are both correct

Question

Quizplus · Accepted Answer

Both A and B are correct advantages of the comprehensive income approach to profit measurement. Profit is determined conceptually based on the full range of economic value changes, rather than just revenue and expense items that go through the income statement. Additionally, using this method ensures that no revenue or expense items are omitted or bypass the income statement, providing a more accurate representation of the company's financial performance. Overall, using comprehensive income as a measure of profit can provide a more useful tool for estimating future profit performance.

Which of These Is Correct? an Advantage of the Comprehensive