Question

What is the purpose of analyzing the Statement of Profit & Loss Account in the context of Cash Flow Statements?

a.

To determine the market share of the organization

b.

To ascertain changes in assets and liabilities

c.

To calculate the amount of cash provided by or used in operations

d.

To assess employee performance

Posted under IC 89 Management Accounting

Answer: (c).To calculate the amount of cash provided by or used in operations Explanation:The Statement of Profit & Loss Account helps in determining the amount of cash provided by or used in operations after making adjustments for non-cash current assets or liabilities.

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Q. What is the purpose of analyzing the Statement of Profit & Loss Account in the context of Cash Flow Statements?
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