Question : For calculating 'cash flow from operating activities' from the given figure of 'Net Profit' earned during a year, how would you deal with, if decrease in Bills Payable,
Option 1: Added
Option 2: Deducted
Option 3: Both A and B
Option 4: None of the above
Correct Answer: Deducted
Solution : Answer = Deducted
When calculating cash flow from operating activities, a decrease in bills payable represents a decrease in liabilities, indicating cash outflow. Therefore, it should be deducted from net profit. This adjustment reflects the actual cash impact of changes in bills payable on the company's operating cash flow. Hence, the correct option is 2.
Question : For calculating 'cash flow from operating activities' from the given figure of 'Net Profit' earned during a year, how would you deal with if Decrease in Inventory?
Question : For calculating 'cash flow from operating activities' from the given figure of 'Net Profit' earned during a year, how would you deal with, if increase in Trade Payables
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