Under the Indirect Method of Preparing the Statement of Cash

Multiple Choice

Under the indirect method of preparing the statement of cash flows: Please select all that apply.

A) The operating profit for a period is adjusted for the effect of non-cash items.
B) The operating profit for a period is adjusted for increases or decreases in inventory, receivables, prepayments, payables and accruals.
C) All the cash inflows and outflows from operations are summarised to produce the net cash inflow from operating activities.
D) Total cash inflows and outflows from operations are ignored.