C is corrent. Per SFAC 5, earnings and comprehensive income have the same broad components--revenues, expenses, gains, and losses, but are not the same because certain classes of gains and losses are included in comprehensive income but are excluded from earnings.
A is incorrect because per SFAC 5, comprehensive income consists of earnings minus cumulative accounting adjustments plus other nonowner changes in equity; therefore, comprehensive income includes all gains and losses that are included in earnings.
B is incorrect. Comprehensive income is not the same as earnings because comprehensive income is a much broader, "all-inclusive" concept of income.
D is incorrect. Per SFAC 5, comprehensive income consists of earnings minus cumulative accounting adjustments plus other nonowner changes in equity; therefore, comprehensive income includes all gains and losses that are included in earnings.
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