Which of the Following Could Be a Component of Other

question 16

Multiple Choice

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

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Definitions:

Arbitrage Pricing Theory

A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.

Single Market Index

An index that measures the performance of a specific market segment or region.

Nonsystematic Risk

This type of risk is unique to a specific company or industry and can be reduced through diversification.

Book-To-Market Ratio

A financial valuation metric comparing a company's book value to its market value, often used to identify undervalued stocks.