General Studies · Financial Accounting
In a Funds Flow Statement, depreciation charged on fixed assets is treated as which of the following?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A direct reduction in working capital
- 2Added back to the net profit to determine funds from operations✓
- 3An application of funds only
- 4A source of funds only
Correct answer
Added back to the net profit to determine funds from operations
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