Reconciliation between net income and comprehensive income would include:
A) unrealized holding losses but not unrealized holding gains on investments.
B) unrealized holding gains but not unrealized holding losses on investments.
C) unrealized holding losses and unrealized holding gains on investments.
D) neither unrealized holding losses nor unrealized holding gains on investments.

Question

Quizplus · Accepted Answer

Reconciliation between net income and comprehensive income includes both unrealized holding losses and unrealized holding gains on investments. This is because both of these items represent changes in the value of investments that are not realized through actual sales or disposition of the investments. The purpose of reconciling net income and comprehensive income is to provide a more complete picture of an entity's financial performance, including all changes in value of investments that have not yet been realized.

Reconciliation Between Net Income and Comprehensive Income Would Include