Question : Arrange the following in proper sequence while preparing Cash Flow Statement :
(A) Net cash flow from operating activities
(B) Cash flow from financing activities
(C) Cash flow from investing activities
(D) Calculate net profit before tax and extraordinary items in working note
Choose the correct answer from the options given below:
Option 1: (A), (B), (C), (D)
Option 2: (D), (A), (C),(B)
Option 3: (B), (A), (D), (C)
Option 4: (C), (B), (D), (A)
Correct Answer: (D), (A), (C),(B)
Solution : Following is the proper sequence while preparing Cash Flow Statement: 1. Calculate net profit before tax and extraordinary items in working notes, 2. Net cash flow from operating activities, 3. Cash flow from investing activities, 4. Cash flow from financing activities.
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