Following are the steps while making cash flow from operating activities. Arrange them in correct sequence:
(A) Operating Profit before Working Capital Changes
(B) Net Profit before Tax and Extra Ordinary Items
(C) Cash generated from Operations
(D) Tax Paid
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (A), (C), (D)
Under the indirect method, cash flow from operating activities is built up in this order:
(B) Net Profit before Tax and Extra Ordinary Items
(A) Operating Profit before Working Capital Changes
(C) Cash generated from Operations
(D) Tax Paid
NCERT (2026-27 edition):
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