Comprehensive income includes net income and which other item?

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Multiple Choice

Comprehensive income includes net income and which other item?

Comprehensive income is net income plus items reported in other comprehensive income (OCI). A classic OCI item is unrealized gains and losses on securities available for sale. These changes in value affect equity (through accumulated other comprehensive income) but are not included in net income until the securities are sold or impaired. Dividends, tax expense, and interest income are components of net income, not OCI. So the item that accompanies net income in comprehensive income is unrealized gains on securities available for sale.

Comprehensive income is net income plus items reported in other comprehensive income (OCI). A classic OCI item is unrealized gains and losses on securities available for sale. These changes in value affect equity (through accumulated other comprehensive income) but are not included in net income until the securities are sold or impaired. Dividends, tax expense, and interest income are components of net income, not OCI. So the item that accompanies net income in comprehensive income is unrealized gains on securities available for sale.

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