A profit on disposal of a non-current asset is added to the operating profit when calculating the cash inflow or outflow from operating activities.

Name: A profit on disposal of a non-current asset is added to the operating profit when calculating the cash inflow or outflow from operating activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A profit on disposal of a non-current asset is not added to operating profit; it is adjusted out because it is a non-cash item and relates to investing activities, not operating activities.

A Profit on Disposal of a Non-Current Asset Is Added