alleryStart learning →A non-operating loss, such as loss on sale of a machine, is
AShown under operating
BDeducted from net income
CLeft out entirely
DAdded back to net income
Answer & Solution
Correct answer: D. Added back to net income
The loss reduced profit but is an investing matter, so it is added back to net income.
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A machine with book value Rs 70,000 is sold at a loss of Rs 15,000. The investing inflow iNet plant rose from Rs 5,00,000 to Rs 5,40,000 after Rs 60,000 depreciation, no sales. CasOperating +4,00,000, investing -3,00,000, financing +50,000, opening 1,20,000. Closing casCash 20,000, bank 1,00,000, 2-month bills 50,000, shares 80,000. Cash and equivalents?Cash flow statements are most commonly prepared using theA company buys back its own shares for cash. This is aThe cash flow statement reveals the quality of a company'sFinancial flexibility in cash flow analysis means the ability to