Arrange the following in sequence related to cash flow from operating activities:
A. Profit on sale of Fixed Assets
B. Operating Profit before Working Capital changes
C. Income Tax Paid
D. Net Profit/Loss before Tax and Extraordinary Items
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → D, A, B, C
Under the indirect method, cash flow from operating activities starts from the net profit before tax and is adjusted step by step until the net cash from operations is reached.
D. Net Profit/Loss before Tax and Extraordinary Items
A. Profit on sale of Fixed Assets
B. Operating Profit before Working Capital changes
C. Income Tax Paid
NCERT (2026-27 edition):
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