When Reconciling Operating Profit After Tax with Net Cash Flow

question 39

Multiple Choice

When reconciling operating profit after tax with net cash flow from operating activities,which of the following adjustments is not correct?

• A) Add back amortisation.
• B) Add an increase in a current liability.
• C) Deduct an increase in a current asset.
• D) Deduct a loss on the sale of an asset.

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Definitions:

Directive Communication

A style of communication where instructions, commands, or directions are given clearly and directly.

Spontaneous Judgments

Immediate assessments or decisions made without premeditation or extended deliberation.

Nonverbal Cues

Forms of non-linguistic communications, such as body language, gestures, facial expressions, and tone of voice, that transmit messages without words.

Emotional Effort

The energy expended to manage one's emotions to fulfill job or social roles.