Question

Why is the computation of Funds from business operations considered technical?

a.

It involves basic arithmetic operations

b.

It requires adjustments to profit for the period

c.

It focuses on short-term financial activities

d.

It simplifies financial statements

Posted under IC 89 Management Accounting

Answer: (b).It requires adjustments to profit for the period Explanation:The computation of Funds from business operations is considered technical as it involves adjustments to profit for the period, making it more complex.

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Q. Why is the computation of Funds from business operations considered technical?
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