Using the Concept of Comprehensive Income and Assuming That the Entity

question 141

Multiple Choice

Using the concept of comprehensive income and assuming that the entity has available-for-sale securities, which of the following items is included as part of comprehensive income but not as part of net income?

• A) Extraordinary items
• B) Accounting changes
• C) Unrealized holding gains or losses
• D) Loss on sale of investments

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Definitions:

Closing Costs

Expenses, over and above the property cost, that buyers and sellers normally incur to complete a real estate transaction.

Historical Cost Principle

An accounting principle that assets should be recorded and reported at their original purchase cost.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Major Classes

Categories or groups into which business assets, liabilities, equity, income, and expenses are divided for organizational and reporting purposes.