Company X has a Net Income of $120,000, Revenues of $460,000, and a $5,000 gain from a foreign currency translation. What is Company X's total comprehensive income? a. $585,000 b. $125,000 c. $465,000 d. $5,000

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Business

Lewis Dominguez

8 October, 09:05

Company X has a Net Income of $120,000, Revenues of $460,000, and a $5,000 gain from a foreign currency translation. What is Company X's total comprehensive income? a. $585,000 b. $125,000 c. $465,000 d. $5,000

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Alexus · Answer 1

Answer: A. $585,000

Explanation: Company's X comprehensive income would be the sum of the net Income of $120,000, revenues of $460,000, and a $5,000 gain from a foreign currency translation. This gives $585,000.

Comprehensive income is the changes in a firm's net assets from non-owner sources during a specified time period and includes net income and unrealized income such as foreign currency exchange gains or losses. It is also given as the sum of net income and other categories of items that because they have not been realized, must bypass the income statement. It serves to give a holistic view of a firm's income not fully captured on the income statement. It's also excludes changes in equity caused by the firm for example, the sale of stock or purchase of shares.