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Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.
The other informations were: Trade Payable showed an increase of Rs. 7,000.
Outstanding expenses showed a decrease of Rs. 5,000.
Accrued Income showed an increase of Rs. 8,000.
Trade payable showed a decrease of Rs. 10,000.
Inventories showed a decrease of Rs. 3,000.
On the basis of above information answer the following questions.
Q. We add depreciation in order to find out operating profit before working capital changes:
  • a)
    because it is an income
  • b)
    because depreciation is a cash expense
  • c)
    because depreciation being a non-cash expense
  • d)
    because it is given in operating activity proforma
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs...
Depreciation is a non cash item.
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Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer?
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Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Humanities/Arts. Download more important topics, notes, lectures and mock test series for Humanities/Arts Exam by signing up for free.
Here you can find the meaning of Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Rathi Udyog, made a profit of 72,000 after changing depreciation of Rs. 17,000 on fixed assets and paid Rs. 10,000 as interim dividend. The goodwill amortized was Rs. 12,000 and profit (Gain) on sale of furniture was Rs. 2,500.The other informations were: Trade Payable showed an increase of Rs. 7,000.Outstanding expenses showed a decrease of Rs. 5,000.Accrued Income showed an increase of Rs. 8,000.Trade payable showed a decrease of Rs. 10,000.Inventories showed a decrease of Rs. 3,000.On the basis of above information answer the following questions.Q. We add depreciation in order to find out operating profit before working capital changes:a)because it is an incomeb)because depreciation is a cash expensec)because depreciation being a non-cash expensed)because it is given in operating activity proformaCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Humanities/Arts tests.
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