While computing cash from operating activities, non-cash/non-operating items are added back to net profit: transfer to reserves, discount on issue of shares written off, and loss on sale of fixed assets. Interest and dividend received are non-operating income and must be deducted, not added. Hence only item (I) is not added.
Which items are not added to the net profit for calculating cash from operating activities? (I) Interest and dividend received (II) Transfer to…
CUET UG 2022 — Accountancy Financial Statements
2022mcqhard
Which items are not added to the net profit for calculating cash from operating activities?
(I) Interest and dividend received
(II) Transfer to reserves
(III) Discount on issue of shares
(IV) Loss on sale of fixed assets
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
Only (I)
- B
(I) and (II)
- C
(I), (II) and (III)
- D
(I), (II), (III) and (IV)
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