We add depreciation in order to find out operating profit before working capital changes : Option 1: because it is an income Option 2: because depreciation is a cash expense Option 3: because depreciation being a non-cash expense Option 4: because it is given in operating activity proforma

The answer is 'because depreciation being a non-cash expense'. View full solution:

CUET Accountancy - We add depreciation in order to find out operating profit before working capital changes : | PYQs + Solutions

CUET Accountancy 2022 20 July Shift 1

Financial Statements

Easy

because it is an income

because depreciation is a cash expense

because depreciation being a non-cash expense

because it is given in operating activity proforma

✅ Correct Option: 3

Related questions:

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Match List - I with List - II.

List - I	List - II
(A) Operating Activities	(I) Issue of equity shares
(B) Investing Activities	(II) Purchase of Marketable securities
(C) Financing Activities	(III) Cash sales
(D) Cash Equivalent	(IV) Purchase of fixed assets

Choose the correct answer from the options given below :

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