Alright, I just wanted to include a short discussion of comprehensive income. Let's check it out real quick. So in general, comprehensive income is going to be beyond the scope of this class. This is something that you'll learn in maybe your 3rd or 4th accounting class and I just want to give you a high level because a lot of books like to mention it at this point. So comprehensive income, it's going to be your net income plus stuff. I'm going to say just stuff because comprehensive income is kind of where the weird things in accounting, things that we'll definitely not talk about in this course. They go to comprehensive income, okay? So it's weird things like this: unrealized gains and losses on available for sale securities, foreign currency translation adjustments, and other even more complicated issues. Aren't you glad that we don't have to go through those topics right now? That's all I just want you to know, and I just wanted to show you what this looks like. So comprehensive income does not affect net income, okay? Remember, we have our net income that's what's shown on the income statement and then we could show comprehensive income by starting with our net income like we do in our example here. We start with net income, net sales, right? Cost of goods sold. It's basically your income statement from here to here. This is all the income statement, right? That's all your income statement getting to net income. And then it shows the other weird things. It shows our foreign currency translation, it shows the fair values of derivatives, right? The weird things are showing up down there. It's almost like the other comprehensive income this section is like the trash can of accounting, it's like oh this is a weird thing just shove it in comprehensive income, okay? So just so you know, comprehensive income, it's like net income but it includes even more abstract issues as well. Cool? So that's about it. We don't need to dive into any details, just know the idea of comprehensive income there. Next video.
4. Merchandising Operations
Comprehensive Income
4. Merchandising Operations
Comprehensive Income - Online Tutor, Practice Problems & Exam Prep
Comprehensive Income is beyond the scope of this class. Here is a brief overview of comprehensive income.
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Comprehensive Income
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