Any unrealized gains or losses on trading securities would have to be added back to or deducted from net earnings 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 trading securities are non-cash items that affect net income but do not reflect actual cash flows. Therefore, they would need to be added back to or deducted from net earnings to properly determine the cash flows from operating activities under the indirect method.

Any Unrealized Gains or Losses on Trading Securities Would Have