how is 'provision for bad debt' treated in cash flow satement?
Dear Student,
Increase in Provision for bad debts is added to "operating profit before working capital changes" while decrease in provision is subtracted.
For detailed explanation, refer to the study material provided to you. The third chapter of Cash Flow Statement "Format and steps to prepare cash flow statement".
Keep posting for further doubts!!
Increase in Provision for bad debts is added to "operating profit before working capital changes" while decrease in provision is subtracted.
For detailed explanation, refer to the study material provided to you. The third chapter of Cash Flow Statement "Format and steps to prepare cash flow statement".
Keep posting for further doubts!!