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      Question

      Which of the following is considered an item of Other

      Comprehensive Income?
      A Dividend income from an investment. Correct Answer Incorrect Answer
      B Interest expense on bonds. Correct Answer Incorrect Answer
      C Unrealized gains on available-for-sale securities. Correct Answer Incorrect Answer
      D Sales revenue from products. Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Unrealized gains and losses on investments that are classified as available for sale are reported in OCI until they are realized through sale or other means. This is because they represent changes in the fair value of the securities that have not yet been realized through market transactions.

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