When Preparing the Note Attached to the Statement of Cash

question 38

Multiple Choice

When preparing the note attached to the statement of cash flows reconciling operating profit after tax with net cash flow from operating activities,which adjustment is not correct?

• A)Add back depreciation
• B)Add a decrease in a current asset
• C)Add a decrease in a current liability
• D)Deduct a gain on the sale of an asset

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Definitions:

Judge

An official appointed to decide cases in a court of law and to administer justice according to the law.

Majority

More than half of a given group or quantity; often used to describe the age at which a person is legally acknowledged as an adult.

Concurring Opinion

An additional written opinion by a judge who agrees with the decision of the court but for different reasons than those expressed in the majority opinion.

Majority Opinion

The judicial opinion agreed to by more than half of the members of a court, setting out the decision of the court and an explanation of the rationale behind the court's decision.