If the net operating profit of the business is Rs. 90,000 and the debtors have decreased during the year by Rs. 40,000 . Cash from operations is: - Accountancy MCQ CUET Accountancy 2022 8 Aug Shift 2 2026 | ExamTest.live

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1 mark

If the net operating profit of the business is Rs. 90, 000 and the debtors have decreased during the year by Rs. 40, 000 . Cash from operations is:

Solution & Step-by-step Explanation

Decrease in current assets (like debtors) is added to the operating profit.Cash from operations = 90, 000 + 40, 000 = 1, 30, 000 .

Try it yourself before checking the explanation above.

If the net operating profit of the business is Rs. 90, 000 and the debtors have decreased during the year by Rs. 40, 000 . Cash from operations is:

Rs. 90, 000

Rs. 50, 000

Rs. 1, 30, 000

Rs. 40, 000

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