Answer (C) is correct . The three most common items of comprehensive income are holding gains and losses, such as changes in the fair values of available-for-sale securities; adjustments arising from translating an entity’s financial statements from its functional currency into the reporting currency; and the portion of unrecognized prior service cost that was not recognized in pension expense.
Answer (A) is incorrect because The cumulative effects of a change in accounting principle affect the balance sheet.
Answer (B) is incorrect because Extraordinary gains and losses are presented in a separate caption of the income statement.
Answer (D) is incorrect because Results of discontinued operations are presented in a separate caption of the income statement.
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