A reconciliation between the operating profit after tax and the net cash flow from operating activities:
A) highlights changes in the working capital accounts from one year to the next.
B) reinforces the link between the cash received from operating activities and the reported profit or loss for the period.
C) shows the differences in accrual transactions and cash flow.
D) all the above options are correct.

Question

Quizplus · Accepted Answer

All of the options are correct. The reconciliation between operating profit after tax and net cash flow from operating activities helps to understand changes in working capital accounts, shows the differences between accrual transactions and cash flow, and reinforces the link between cash received from operating activities and the reported profit or loss for the period. It is an important tool for analyzing a company's financial health and performance.

A Reconciliation Between the Operating Profit After Tax and the Net