Which Items Are Excluded from the Determination of Net Income

question 14

Multiple Choice

Which items are excluded from the determination of net income but are included in the determination of other comprehensive income?

• A)Foreign currency exchange gains and losses
• B)Foreign currency translation adjustments
• C)Realized gains and losses on the sale of available- for- sale securities
• D)All of the above

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Definitions:

Call Price

The price at which a bond or other financial instrument can be redeemed by the issuer before its maturity.

Exercise Price

The rate at which an option's owner is permitted to purchase or sell the underlying asset.

Option Contract

A contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a certain period.