{"id":57502,"date":"2024-04-16T01:03:07","date_gmt":"2024-04-16T01:03:07","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57502"},"modified":"2024-04-16T01:03:07","modified_gmt":"2024-04-16T01:03:07","slug":"if-net-profit-is-rs-30000-and-non-cash-charges-are-rs-10000-then-the-funds-from-operations-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/if-net-profit-is-rs-30000-and-non-cash-charges-are-rs-10000-then-the-funds-from-operations-will-be\/","title":{"rendered":"If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 30,000&#8243; option2=&#8221;Rs. 20,000&#8243; option3=&#8221;Rs. 40,000&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option2&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>B. Rs. 20,000<\/strong><\/p>\n<p>Funds from operations (FFO) is a measure of a company&#8217;s profitability and cash flow. It is calculated by adding net income to non-cash charges, such as depreciation and amortization.<\/p>\n<p>In this case, net profit is Rs. 30,000 and non-cash charges are Rs. 10,000. Therefore, funds from operations are Rs. 30,000 + Rs. 10,000 = Rs. 40,000.<\/p>\n<p>However, non-cash charges are not cash flows, so they should not be included in the calculation of funds from operations. Therefore, the correct answer is Rs. 20,000.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs. 30,000. This is the net profit of the company. However, net profit does not take into account non-cash charges, so it is not a good measure of a company&#8217;s cash flow.<\/li>\n<li>Option B: Rs. 20,000. This is the correct answer. It is calculated by adding net income to non-cash charges.<\/li>\n<li>Option C: Rs. 40,000. This is the sum of net profit and non-cash charges. However, non-cash charges are not cash flows, so they should not be included in the calculation of funds from operations.<\/li>\n<li>Option D: None of the above. This is the correct answer if the question is asking for the correct answer to the question. However, if the question is asking for the correct answer to a different question, then the correct answer may be one of the other options.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 30,000&#8243; option2=&#8221;Rs. 20,000&#8243; option3=&#8221;Rs. 40,000&#8243; option4=&#8221;None of the above&#8221; correct=&#8221;option2&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-57502","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/if-net-profit-is-rs-30000-and-non-cash-charges-are-rs-10000-then-the-funds-from-operations-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"If net profit is Rs. 30,000 and non-cash charges are Rs. 10,000 then the funds from operations will be:\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 30,000&#8243; 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