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:

Average Accounting Return

A financial ratio that reflects the average net income of an investment compared to its average book value.

Liquid Investments

Assets that can be easily converted into cash with minimal impact on their value.

Biased

Demonstrating or exhibiting unfair or prejudiced perspectives, often leading to partial judgments or decisions.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, representing the rate at which the net present value of costs equals the net present value of benefits.