If the profits made during the year are ₹50,000 and the bills receivables have decreased by ₹10,000 during the year then the cash flow from operating activities will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹60,000
Bills receivable are a current asset. A decrease in a current asset means cash has come in, so it is added to the profit while computing cash flow from operating activities.
Cash flow from operating activities:
= ₹50,000 + ₹10,000
= ₹60,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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