Reconciliation between net income and comprehensive income would include:
A)Unrealized losses but not unrealized gains on available for sale securities.
B)Unrealized gains but not unrealized losses on available for sale securities.
C)Unrealized losses and unrealized gains on available for sale securities.
D)Neither unrealized losses nor unrealized gains on available for sale securities.

Question

Quizplus · Accepted Answer

Reconciliation between net income and comprehensive income would include both unrealized losses and unrealized gains on available for sale securities. This is because comprehensive income includes all gains and losses that are not included in net income, including unrealized gains and losses on available for sale securities. Thus, the reconciliation between net income and comprehensive income would need to include these amounts in order to provide a complete picture of the company's financial performance.

Reconciliation Between Net Income and Comprehensive Income Would Include