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How will you treat decrease in prepaid expenses in the cash How from operating activities?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Decrease in prepaid expenses will be added to operating profit while calculating cash flow from operating activities.


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Previous PostWhy do we add back preliminary expenses to net profit while calculating cash flows from operating activities?
Next PostWhat adjustments are required for decrease or increase in Trade Payables/bills payable while calculating ‘Cash flow from operating activities’?

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