Which of the following could be a component of other comprehensive income (loss) ?

A) realized gains or losses from sale of investments in available-for-sale securities
B) translation adjustments from converting the financial statements of a company's foreign operations into U.S.dollars
C) gains (losses) on extraordinary items
D) warranty liability adjustments

Question

Dawson Rockburn · Accepted Answer

Final Answer : B, Explanation :  Translation adjustments from converting the financial statements of a company's foreign operations into U.S. dollars are included in other comprehensive income or loss. The other options listed are not generally included in other comprehensive income or loss. Realized gains or losses from the sale of investments in available-for-sale securities are recognized in net income, gains or losses on extraordinary items are also recognized in net income, and warranty liability adjustments are recognized as a provision for warranty expenses in net income.

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