Match the adjustment item with its treatment when calculating cash flow from operating activities using the indirect method (starting from Net Profit before tax):

  Column A (Treatment)   Column B (Adjustment Item)
A Added back (1) Depreciation charged
B Deducted (2) Profit on sale of non-current investment
C Deduction (due to increase in current asset or decrease in current liability) (3) Increase in Trade Receivables
D Addition (due to decrease in current asset or increase in current liability) (4) Increase in Trade Payables

1
A-1, B-2, C-3, D-4
2
A-2, B-1, C-4, D-3
3
A-1, B-2, C-4, D-3
4
A-2, B-1, C-3, D-4

Sponsored

hivanix.in

Visit

This quiz is brought to you by hivanix.in

🌐 Web App Development

Quick Navigation