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Management · Q323

Financial Management

Graduate and Post Graduate · Management · question 323

Q323

In calculation of net cash flow, deferred tax payments are classified as

A.
non-cash revenues
B.
non-cash charges
Answer
C.
current liabilities
D.
income expense

Answer: Option B

Solution

Answer: Option B
Solution:
In calculation of net cash flow, deferred tax payments are classified as non-cash charges. A non-cash charge is a write-down or accounting expense that does not involve a cash payment.