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hardMCQCUET Accountancy 2023 29 May Shift 22026Accountancy
1 mark

Ltd made a profit of after charging depreciation of on Assets, transfer to General Reserve , Written off Goodwill , Profit on sale of Asset , increase in Debtors , increase in creditors , increase in prepaid expenses and decrease in outstanding expenses . What will be the cash from operating activities?

  1. A
  2. B
  3. C
  4. D

Solution & Step-by-step Explanation

Let us compute Cash Flow from Operating Activities step-by-step:

Step 1: Adjustments for Non-Cash and Non-Operating ItemsAdd: Depreciation Add: Transfer to General Reserve Add: Goodwill written off Less: Profit on sale of Asset $
= (300) = 600 = (20) = (200)
$\text{Cash Generated from Operating Activities} = 15,400 - 300 + 600 - 20 - 200 = 15,480

Practice this question

Try it yourself before checking the explanation above.

Ltd made a profit of after charging depreciation of on Assets, transfer to General Reserve , Written off Goodwill , Profit on sale of Asset , increase in Debtors , increase in creditors , increase in prepaid expenses and decrease in outstanding expenses . What will be the cash from operating activities?
A
B
C
D

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