Any unrealized gains or losses on debt trading securities would have to be added back to or subtracted from net income on the statement of cash flows under the indirect method of determining cash flows from operating activities.

Question

Quizplus · Accepted Answer

Unrealized gains or losses on debt trading securities are included in net income on the income statement, but they are not considered cash flows from operating activities. Therefore, they must be added back to or subtracted from net income to calculate the cash provided by operating activities using the indirect method.

Any Unrealized Gains or Losses on Debt Trading Securities Would