A decrease in debtors means more cash has been collected, so it is added to net operating profit.
Cash from operations = Net operating profit + Decrease in debtors = 90,000+40,000=1,30,000.
If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:
CUET UG 2022 — Accountancy Financial Statements
2022mcqeasy
If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000. Cash from operations is:
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
Rs. 90,000
- B
Rs. 50,000
- C
Rs. 1,30,000
- D
Rs. 40,000
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