In the statement of cash flows, why do the following adjustments need to be made to the

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In the statement of cash flows, why do the following adjustments need to be made to the operating profit in order to calculate the cash flow from operating activities?

(i) Subtraction of any profit on asset disposal.

(ii) Adding back any deprecation.

(iii) Subtracting any increase in trade receivables.

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Accounting For Non Accountants

ISBN: 9780749465971

9th Edition

Authors: David Horner

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Question Posted: Jan 31, 2024 03:05 AM

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In the statement of cash flows, why do the following adjustments need to be made to the

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i Profits on disposal are subtracted because this profit would have been added on to t...View the full answer

Accounting For Non Accountants

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