When preparing the statement of cash flows using the indirect method, which of the following is added to net income to determine cash flows from operations?
A) payments to suppliers
B) receipts from customers
C) bond premium amortization
D) unrealized losses from trading securities

Question

Quizplus · Accepted Answer

Unrealized losses from trading securities are added back to net income in the indirect method because they are non-cash expenses that reduce net income but do not affect cash flows.

When Preparing the Statement of Cash Flows Using the Indirect