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Rearrange the phrases in correct sequence of Cash Flow Statements: (A) Closing Balance of Cash (B) Repayment of Bank Loan (C) Purchase of Machin
Question

Rearrange the phrases in correct sequence of Cash Flow Statements:
(A) Closing Balance of Cash
(B) Repayment of Bank Loan
(C) Purchase of Machinery
(D) Net profit before tax and extraordinary items
(E) Adding and Deducting the changes in working capital
Choose the correct answer from the options given below :

A.

(D), (E), (C), (B), (A)

B.

(D), (E), (A), (C), (B)

C.

(A), (D), (E), (B), (C)

D.

(D), (A), (B), (C), (E)

Correct option is A

The sequence for a Cash Flow Statement is:
(D) Net profit before tax and extraordinary items,
(E) Adding and deducting the changes in working capital,
(C) Purchase of Machinery,
(B) Repayment of Bank Loan,
(A) Closing Balance of Cash.

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