Practicing Success
An increase in accrued income during the year is..................from the operating profit before working capital changes, while preparing the cash flow statement by the company. |
Added Deducted Not treated None of these |
Deducted |
The correct answer is option 2- Deducted. Increase in current assets and decrease in current liabilities are to be deducted while increase in current liabilities and decrease in current assets are to be added up. An increase in accrued income during the year is an increase in current asset so it is deducted from the operating profit before working capital changes, while preparing the cash flow statement by the company. |