Accumulated other comprehensive income:
A) is a liability.
B) might include prior service cost from pension plan amendments.
C) includes unrealized gains and losses on equity securities.
D) is reported in the income statement.

Question

Quizplus · Accepted Answer

Accumulated other comprehensive income is an equity component that captures unrealized gains and losses, and certain other items that are not included in net income. Prior service cost from pension plan amendments is an example of an item that might be included in accumulated other comprehensive income, reflecting adjustments to pension obligations for plan changes affecting employee benefits earned in prior periods.

Accumulated Other Comprehensive Income