Question : Which of the following statement is incorrect?

Option 1: Loss on sale of fixed assets is added back and profit on sale of fixed assets is deducted from net profit while arriving at the cash flow from operating activities

Option 2: Depreciation is added back to net profit while calculating cash flows from operating activities

Option 3: Depreciation increase the value of net profit without reducing the cash balance as it is a non- cash item

Option 4: None of the above

Question : In cash flow statement, Adjustment for payment of tax is

Option 1: Payment of tax will be deducted under 'Cash flows from operating activities'

Option 2: Payment of tax will be added under 'Cash flows from operating activities'

Option 3: Payment of tax will be deducted under 'Cash flows from Financing activities'

Option 4: None of the above

Question : In cash flow statement, Adjustment for payment of tax is

Option 1: Payment of tax will be deducted under 'Cash flows from operating activities'

Option 2: Payment of tax will be added under 'Cash flows from operating activities'

Option 3: Payment of tax will be deducted under 'Cash flows from Financing activities'

Option 4: None of the above

Question : What adjustments are required for a decrease or increase in Trade Payables/bills payable while calculating 'Cash flow from operating activities'?

Option 1: Deducted and added

Option 2: Added and deducted

Option 3: Added and added

Option 4: Deducted and deducted

Question : What adjustments are required for a decrease or increase in Trade Payables/bills payable while calculating 'Cash flow from operating activities'?

Option 1: Deducted and added

Option 2: Added and deducted

Option 3: Added and added

Option 4: Deducted and deducted