Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

What will be the cash flow from operating activities in the cash flow statement of the company, if the net profits made during the year are ₹50,000 and the bills receivables have decreased by ₹10,000 during the year?

Options:

₹40000

₹50000

₹60000

₹30000

Correct Answer:

₹60000

Explanation:

Net profit= ₹50000
+ Decrease in current asset= 10000
Operating profit= 50000 + 10000 = ₹60000