While computing cash from operations under the indirect method, a decrease in current assets like inventory releases cash and is added to operating profit. Increase in trade receivables, increase in prepaid expenses, and decrease in trade payables all reduce cash and are deducted.
Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method?
CUET UG 2023 — Accountancy Financial Statements
2023mcqeasy
Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method?
Official previous-year question
Held on 29 May 2023 · Verified 13 Jul 2026.
Options
- A
Increase in Trade Receivable by Rs. 80,000
- B
Decrease in Inventory by Rs. 50,000
- C
Increase in Prepaid Expenses by Rs. 30,000
- D
Decrease in Trade Payable by Rs. 20,000
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