Question
Accountancy Question on Statement of Changes in Financial Position
Arrange the following in proper sequence while preparing Cash Flow Statement:,
(A) Net cash flow from operating activities
(B) Cash flow from financing activities
(C) Cash flow from investing activities
(D) Calculate net profit before tax and extraordinary items in working note
Choose the correct answer from the options given below :
A
(A), (B), (C), (D)
B
(D), (A), (C), (B)
C
(B), (A), (D), (C)
D
(C), (B), (D), (A)
Answer
(D), (A), (C), (B)
Explanation
Solution
The correct sequence for preparing a Cash Flow Statement is: (D) Calculate net profit → (A) Net cash flow from operating activities → (C) Cash flow from investing activities → (B) Cash flow from financing activities.