All of the following statements regarding other comprehensive income are true except:
A)Other comprehensive income includes unrealized gains and losses on available-for-sale securities.
B)Other comprehensive income is not considered when calculating comprehensive income.
C)Other comprehensive income includes foreign currency adjustments.
D)Other comprehensive income includes pension adjustments.
E)Accumulated other comprehensive income is defined as the cumulative impact of other comprehensive income.

Question

Quizplus · Accepted Answer

Other comprehensive income is actually included when calculating comprehensive income, hence statement B is false. Statements A, C, D, and E are all true. Other comprehensive income is a subset of total comprehensive income and includes items that are not reflected in net income, such as unrealized gains and losses on available-for-sale securities, foreign currency adjustments, and pension adjustments. Accumulated other comprehensive income is the cumulative impact of these items and is reported as an equity account on the balance sheet.

All of the Following Statements Regarding Other Comprehensive Income Are