When Preparing the Note Attached to the Statement of Cash

question 58

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 an increase in a current liability
• B)Deduct a decrease in a current asset
• C)Deduct a decrease in a current liability
• D)Deduct a gain on the sale of an asset

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Definitions:

International Trade

Involves the exchange of goods and services across national borders.

World Price

The international market price of a good or service, influenced by global supply and demand conditions.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a given time period.

World Price

The international price at which goods are traded between countries, affecting domestic markets.