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:

Moral Agency

The capacity of individuals to make ethical decisions and act upon them in the context of right and wrong.

Respirations

The process of inhaling and exhaling air to facilitate gas exchange between the body and the environment, typically measured in breaths per minute.

Ventilator

A machine that provides mechanical ventilation by moving breathable air into and out of the lungs, to deliver breaths to a patient who is physically unable to breathe.

DNAR (AND) Prescription

A medical order (Do Not Attempt Resuscitation / Allow Natural Death) indicating that no resuscitative efforts should be made in the event of a patient's cardiac or respiratory arrest.