Answer (B) is correct . Comprehensive income includes all changes in equity (net assets) of a business entity except those changes resulting from investments by owners and distributions to owners. Comprehensive income includes two major categories: net income and OCI. Net income includes the results of operations classified as income from continuing operations, discontinued operations, and extraordinary items. Components of comprehensive income not included in the determination of net income are included in OCI; for example, unrealized gains and losses on available-for-sale securities (except those that are hedged items in a fair value hedge).
Answer (A) is incorrect because Unrealized gains and losses on trading securities are components of net income.
Answer (C) is incorrect because Realized gains and losses on available-for-sale securities are components of net income.
Answer (D) is incorrect because The cumulative effect of a change in accounting principle is not reported in the income statement.
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