Which Items Are Excluded from the Determination of Net Income

question 139

Multiple Choice

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

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

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Definitions:

Supply Curve

A graph displaying the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding all else equal.

Diminishing Marginal Product

A principle stating that as more of a variable input is added to a fixed input, the additional output produced from each additional unit of the variable input eventually decreases.

Marginal Costs

The supplementary cost arising from the manufacture of an extra unit of a good or service.

Variable Inputs

Inputs that can be adjusted in the short term to alter the level of output in the production process.