Accounting · Cash Flow Statement
From the following information, evaluate the statements regarding Cash Flow from Operating Activities: Net Profit before tax = ¹80,000 Depreciation = ¹10,000 Increase in Debtors = ¹5,000 Decrease in Creditors = ¹3,000 Statements: A. Increase in Debtors decreases cash flow from operating activities. B. Decrease in Creditors increases cash flow from operating activities.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and B are true
- 2Both A and B are false
- 3A is true, B is false✓
- 4A is false, B is true
Correct answer
A is true, B is false
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