Cash flow statement

508 views
User Avatar

student
63 Points Posted on 15 July 2015
Why loss on sale of fixed asset is added in the net profit in cash flow statement.
0 Reply Share Follow
On 15 July 2015 at 01:48 Report
Replies (2)
User Avatar

Student CA IPCC
259 Points Posted on 15 July 2015
Bcz it did not rslts in outflow of cash... Firstly u should knw the purpose of CFS...
Reply
On 15 July 2015 at 10:10
User Avatar

CA
42 Points Posted on 15 July 2015

Loss on Sale of Fixed Asset is a non-cash item.We add it to the net profit to reach to the net cash from operating activities.The actual cash inflow from sale of fixed asset is shown in "cash flow from Investing activities".

Reply
On 15 July 2015 at 11:10

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Guidence requested for a Finance Professional with
  2. Expert Opinion Required – Form 140 Gross Amo
  3. WRONG TAX DEMAND - formal responses , rectificatio
  4. Foreign remittance
  5. Affordable Residential Flats in Gurgaon
  6. Manufacturing
  7. TAN REGISTRATION ON E-FILLING SITE
  8. Form 10-IEA – Continuing Old Regime
  9. Income tax act 2026
  10. Belated Return where Form 10IEA filed this year to

More recent discussions | Post

Related Topics :

Loading