Question

Which of the following is not an example of other comprehensive income?

a. Income from sales
b. Unrealized loss on securities available for sale
c. Foreign currency translation adjustments
d. Deferred gains from derivatives

Answer 1

Income from sales is not an example of other comprehensive income and is instead a part of traditional net income as it represents the revenues from a company's primary operations.

Step-by-step explanation:

The question refers to components of other comprehensive income, which are items of revenue, expenses, gains, and losses that are excluded from net income on the income statement. These items are instead reported in other comprehensive income and accumulate in the equity section of the balance sheet under accumulated other comprehensive income. Other comprehensive income items can include:

• Unrealized gains and losses on securities not classified as trading
• Foreign currency translation adjustments
• Deferred gains or losses on derivatives

In the list provided in the student's question, the option that is not an example of other comprehensive income is:

• a. Income from sales

Income from sales is not considered other comprehensive income; it is a part of traditional net income as it represents the revenues from a company's primary operations.