The net cash inflow (or outflow)from operating activities is computed by adjusting the reported accrual profit for noncash revenue and noncash expense items.

Question

Quizplus · Accepted Answer

The net cash inflow (or outflow) from operating activities is determined by adjusting the reported accrual profit for noncash revenue and noncash expense items. This is done to convert the accrual basis of accounting to a cash basis for the purpose of determining cash flows from operating activities. Therefore, the statement is true.

The Net Cash Inflow (Or Outflow)from Operating Activities Is Computed