Arrange the following activities in correct order while preparing Cash Flow Statement.
A. Increase in prepaid Insurance.
B. Purchase of Copyrights
C. Operating profit before working capital changes
D. Income tax paid
E. Redemption of preference shares. Choose the correct answer from the options given below:
This question was previously asked in
Shift 16/06/2023 3:30 PM - 6:30 PM
A
A, C, D, E, B
B
C, A, D, B, E
C
C, D, A, B, E
D
A, D, B, C, E
Correct Answer
C, A, D, B, E
Detailed Explanation
To prepare a Cash Flow Statement using the indirect method, the correct order of activities is as follows:
- C. Operating profit before working capital changes
- A. Increase in prepaid Insurance
- D. Income tax paid
- B. Purchase of Copyrights
- E. Redemption of preference shares
So, the correct order is option 2: "C, A, D, B, E."
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