[amp_mcq option1=”net profit plus decrease in current assets” option2=”net profit plus increase in current assets” option3=”net profit minus decrease in current assets” option4=”None of the above” correct=”option4″]<\/p>\n
The correct answer is: D. None of the above<\/strong><\/p>\n Cash flow from operations (CFO) is a measure of a company’s ability to generate cash from its core business activities. It is calculated by taking net income and adding back non-cash expenses, such as depreciation and amortization. CFO is important because it provides a more accurate picture of a company’s financial health than net income alone.<\/p>\n Net profit is a company’s total revenue minus its total expenses. It is a measure of a company’s profitability, but it does not take into account a company’s cash flow. For example, a company could have a high net profit but still be struggling to generate cash if it has a lot of accounts receivable or inventory.<\/p>\n Decrease in current assets is a decrease in a company’s assets that are expected to be converted into cash within one year. This includes items such as cash, accounts receivable, and inventory. A decrease in current assets can be a sign that a company is having trouble selling its products or collecting its receivables.<\/p>\n Increase in current assets is an increase in a company’s assets that are expected to be converted into cash within one year. This includes items such as cash, accounts receivable, and inventory. An increase in current assets can be a sign that a company is doing well and is generating more cash from its operations.<\/p>\n Therefore, none of the options A, B, and C are correct.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”net profit plus decrease in current assets” option2=”net profit plus increase in current assets” option3=”net profit minus decrease in current assets” option4=”None of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-44756","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n