Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions EDVT6XDTKF
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Cash Flow Statement

Question:

Arrange the following in a sequence to determine Cash Flow from Operating Activities in case there is no provision for tax.

(A) Net Cash From Operating Activities
(B) Net Profit before Taxation
(C) Adjustments for working Capital Changes
(D) Adjustment for Non Cash and Non Operating Items
(E) Operating Profit before Working Capital

Choose the correct answer from the options given below:

Options:

(A), (B), (C), (D), (E)

(B), (C), (D), (E), (A)

(B), (D), (E), (C), (A)

(B), (D), (C), (E), (A)

Correct Answer:

(B), (D), (E), (C), (A)

Explanation:

The correct answer is option 3- (B), (D), (E), (C), (A).


(B) Net Profit before Taxation

(D) Adjustment for Non Cash and Non Operating Items

(E) Operating Profit before Working Capital

(C) Adjustments for working Capital Changes

(A) Net Cash From Operating Activities.

 

Performa of calculating cash flows from operating activities as per indirect method.

  Particulars Amount
  Net Profit/Loss before Tax and Extraordinary Items  
Add Deductions already made in Statement of Profit and Loss on account of Non-cash
items such as Depreciation, Goodwill to be Written-off.		  
Add Deductions already made in Statement of Profit and Loss on Account of
Non-operating items such as Interest.		  
Less Additions (incomes) made in Statement of Profit and Loss on Account of
Non-operating items such as Dividend received, Profit on sale of Fixed Assets.		  
  Operating Profit before Working Capital changes  
Less in case of increase in current assets (other than cash and cash equivalent)
and decrease in current liabilities		  
Add in case of decrease in current assets (other than cash and cash equivalent)
and increase in current liabilities.		  
  Cash Flows from Operation Activities before Tax and Extraordinary items  
Less Income Tax Paid  
+/– Effects of Extraordinary Items  
  Net Cash from Operating Activities  

 

CUET Questions