Accumulated Other Comprehensive Income
A)is a shareholders' equity account on the balance sheet.
B)reports the cumulative amounts of other comprehensive income as of the date of the balance sheet.
C)equals net income on the traditional income statement plus other comprehensive income for the period.
D)is both choices a and b.
E)is all choices a, b, and c.

Question

Quizplus · Accepted Answer

Accumulated Other Comprehensive Income is a shareholders' equity account that reports the cumulative amounts of other comprehensive income as of the date of the balance sheet. It is not equal to net income on the traditional income statement plus other comprehensive income for the period, but rather represents the total amount of other comprehensive income that has been recognized since the company's inception and has not yet been recognized in net income. Therefore, option D is correct as it includes both these points.