When Preparing the Note Attached to the Cash Flow Statement

question 20

Multiple Choice

When preparing the note attached to the cash flow statement reconciling operating profit with cash flow from operations, which statement is not true?

• A) An increase in current liabilities is deducted from profit.
• B) A decrease in current assets is added to profit.
• C) An increase in current assets is deducted from profit.
• D) All of the above are true.

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Definitions:

Innervations

The supply of nerves to a specific body part, crucial for sensation and movement.

Lateral Rectus

A muscle in the eye responsible for moving the eyeball outward, away from the midline of the body.

Auditory Cortex

The part of the brain that is responsible for processing auditory information, located in the temporal lobe.

Temporal Lobe

A region of the brain located at the sides of the head responsible for processing auditory information and involved in memory and emotion.