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21-01-2020
Business

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Which of these components does a business exclude from its net income under “operating surplus”?

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23-01-2020

Answer:

Depreciation

non-cash charges

interest on loan

taxes

Explanation:

This is according standard proforma for preparing cash flow statement,interest and taxes are later brought back into the computation for instance interest relates to financing activities while actual tax paid is deducted before arriving at cash generated from operations

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