Correct sequence while computing cash from operating activities: (c) find difference between opening and closing P and L balances, (a) compute Net Profit before Tax after adjustments, (b) compute Operating Profit before WC changes by adjusting non-cash/non-operating items, (d) adjust for working capital changes, (e) deduct tax to arrive at cash from operations.
Arrange the following into correct sequence while computing cash flow from operating activies. (a) Compute Net Profit before tax after making…
CUET UG 2022 — Accountancy Financial Statements
Arrange the following into correct sequence while computing cash flow from operating activies.
(a) Compute Net Profit before tax after making necessary adjustments.
(b) Compute operating profit before working capital changes by making adjustment for non-cash and non-operating activities.
(c) Calculate the difference between opening and closing balance in statment of profit and loss.
(d) Compute operating profit by making adjustment for working capital changes.
(e) Calculate cash generated/cash used from operating activities by deducting tax paid from operating profit.
Choose the correct answer from the options given below :
Held on 20 Jul 2022 · Verified 13 Jul 2026.
Options
- A
(a), (c), (d), (b), (e)
- B
(c), (a), (d), (b), (e)
- C
(a), (b), (d), (c), (e)
- D
(c), (a), (b), (d), (e)
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