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Comprehensive income does not affect net income or retained earnings.
Comprehensive Income
The total change in equity for a reporting period other than from transactions with owners, encompassing all revenues, gains, expenses, and losses.
Net Income
The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.
Retained Earnings
The portion of a company's profits that is kept or retained and saved for future use, reinvestment, or to pay debt.
- Acknowledge the critical role of comprehensive income and its parts in financial statements.
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Learning Objectives
- Acknowledge the critical role of comprehensive income and its parts in financial statements.
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