Which Combination Is the Appropriate Operation to Perform to the Following

question 63

Multiple Choice

Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

• A) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { add } & \text { subtract } & \text { subtract } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { add } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { subtract } & \text { subtract } & \text { add } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Increase in inventories } & \text { Decrease in trade creditors } & \text { Increase in accrued expenses } \\
• \hline \text { subtract } & \text { add } & \text { subtract } \\
• \hline
• \end{array}\]

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