Practicing Success
While computing cash from operations, which item will not affect the cash from operations? |
Increase in value of prepaid expenses Decrease in value of Inventory Increase in share capital Increase in value of trade receivables |
Increase in share capital |
The correct answer is option 3- Increase in share capital. Increase in share capital won't affect cash from operations. Share capital represents funds raised from issuing shares, which doesn't directly impact the cash generated from the company's operating activities. It is a financing activity. |