When Preparing the Note Attached to the Cash Flow Statement

question 2

Multiple Choice

When preparing the note attached to the cash flow statement reconciling profit and cash flow from operations, losses incurred from the sale of non-current assets are:

• A) added back to the profit.
• B) subtracted from the profit.
• C) do not appear in the reconciliation.
• D) sometimes added back to the profit and sometimes subtracted from the profit depending on whether a loss or profit on disposal is incurred.

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Definitions:

LED Bulbs

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Retail businesses that are owned and operated independently, not part of a larger chain or franchise.

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