When Reconciling Profit with Net Cash Flow from Operating Activities

question 43

Multiple Choice

When reconciling profit with net cash flow from operating activities:

• A) add increases in current assets and subtract increases in current liabilities.
• B) subtract increases in current assets and add increases in current liabilities.
• C) add increases in current assets and add increases in current liabilities.
• D) none of the above

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Definitions:

Costing Measure

A method or metric used to calculate the total costs involved in the production of goods or delivery of services.

Employees Hired

The process of adding new individuals to an organization’s workforce through a systematic recruitment and selection process.

HRM Practices

A set of activities and procedures implemented by the human resources department to effectively manage an organization’s workforce.

Measuring

The process of determining the size, quantity, or degree of something typically through the use of instruments or techniques.