When Preparing the Note Attached to the Cash Flow Statement

question 3

Multiple Choice

When preparing the note attached to the cash flow statement reconciling profit and cash flow from operations, proceeds from the disposal of non-current assets are:

• A) added back to the profit.
• B) sometimes added back to the profit and sometimes subtracted from the profit depending on whether a loss or profit on disposal is incurred.
• C) subtracted from the profit.
• D) do not appear in the reconciliation.

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Definitions:

Richmond

A city in Virginia known for its significant history, including roles in the Civil War and civil rights movement.

Confederate

Relating to the confederation of 11 southern US states that seceded from the Union leading to the American Civil War.

Union Troops

The armed forces of the Northern states during the American Civil War, fighting against the Confederate states.

Escape

The act of breaking free from confinement or an undesirable situation, often requiring cunning or force.