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Question 1: Which of the following items would appear in the reconciliation of profit before tax to cash
generated from operations in a statement of cash flows prepared in accordance withIAS 7 Statement
of Cash Flows?
(i)Increase in provision for warranty costs
(ii)Decrease in income tax payable
(iii) Depreciation charge
(iv)
Dividends paid
A.(i) and (ii)
B.(i) and (iii)
C.(ii) and (iii)
D.(ii) and (iv)
Correct Answer: B
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