Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/oci-routing-001

Route net income, OCI, and owner transactions

Tests whether the learner follows the applicable Topic path instead of using cash, realization, or owner labels as universal OCI rules.

Updated Aug 7, 2026 Review due Nov 7, 2026

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Which policy correctly routes changes among net income, OCI, comprehensive income, and owner transactions?

Choose the best answer. a Classify owner transactions outside comprehensive income; route a nonowner item through net income or OCI only under its governing Topic; and trace any reclassification adjustment so an amount is not counted twice. b Send every noncash or unrealized amount to OCI and every realized amount to net income. c Include dividends in comprehensive income because they change total equity. d Leave a previously accumulated component in OCI when it enters net income so both statements preserve the history.

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Answer: a

Choice a. Separate owner from nonowner changes, use the underlying Topic to select net income or OCI, and control reclassification at the component and tax level.