The Difference Between Operating Profit or Loss After Tax and Net

question 59

Multiple Choice

The difference between operating profit or loss after tax and net cash provided by operating activities is due to:

• A)changes in non-current liabilities.
• B)changes in non-current assets.
• C)changes in working capital items.
• D)changes in equity items.

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Definitions:

Inefficiencies

Instances where resources are not used optimally, resulting in wasted or less productive outcomes.

Scarcity

is the fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Rationed

The controlled distribution of scarce resources, goods, or services.

Market Setting

Refers to the competitive environment in which businesses operate, influenced by supply and demand dynamics.