A reconciling item (R) in the statement of cash flows a. is any item that reduce
ID: 2528616 • Letter: A
Question
A reconciling item (R) in the statement of cash flows
a. is any item that reduces or increases income
b. is any item that reduces or increases NCF-operations
c. is any amount causing income to change by an amount different from its effect on operating cash
d. is any amount causing income to change by an amount different from its effect on cash
e. is any item that does not affect operating cash flow
a. is any item that reduces or increases income
b. is any item that reduces or increases NCF-operations
c. is any amount causing income to change by an amount different from its effect on operating cash
d. is any amount causing income to change by an amount different from its effect on cash
e. is any item that does not affect operating cash flow
Explanation / Answer
correct option is "c" -is any amount causing income to change by an amount different from its effect on operating cash
In preparation of cash flow from operating activity ,adjustement are made to reconcile net income to bet cash provided by operating activity.