Question

Which of the following best describes other comprehensive income (OCI) or loss items? Multiple Choice

a.Anything not included in gross profit within operating income
b.All gains and losses that are reported on the income statement
c.Gains and losses that are excluded from the determination of net income and the income statement
d.The gains and losses that are included in net income

Answer 1

Other comprehensive income (OCI) or loss items are gains and losses that are excluded from net income and the income statement.

Step-by-step explanation:

C. Gains and losses that are excluded from the determination of net income and the income statement.

Other comprehensive income (OCI) or loss items refer to gains and losses that are excluded from the determination of net income and the income statement. These items represent transactions or events that have not yet been recognized in the income statement and are reported separately.

For example, unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and gains or losses on the effective portion of hedges are all considered OCI or loss items.