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a. as an add-back to net income when determining cash flow from operations
b. as a deduction from net income when determining cash flow from operations
c. in the financing section
d. None of the above
Option A......Non cash items are added back to Net income when calculating the cash flows from Operation..
a. as an add-back to net income when determining cash flow from operations
the amortisation of bond is added back to operating activities in cashflows because it is a non cash expense.
c) Financing section.The amortization will be show in financing section of statement of cash flows
Option A,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Option A : Amortization is a non cash item and hence will be added back to net income.
Later, when the bonds are paid on maturity, the relevant outflow would be reflected in the Finances Section of Cash Flow
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