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Question

In indirect method of preppearation of cash flow statement, the _______ figure from the income statement is used to calculate the amount of net cash flow from operating activities.


A

Net profit before tax

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B

Gross profit

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C

Depreciation

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D

None of these

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Solution

The correct option is A

Net profit before tax


In Indirect method of preppearation of cash flow statement, the net profit before tax figure from the income statement is used to calculate the amount of net cash flow from operating activities.


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