In chapter 10 page 22 of the CMP, there is an example illustrating the effects of events on profit vs cash. Can you please explain why the answers below are true?
a) the purchase of a non-current asset for cash (Answer: no change in pre-tax profits)
e) an upward revaluation of inventories held (Answer: higher pre-tax profits)
a) the purchase of a non-current asset for cash (Answer: no change in pre-tax profits)
e) an upward revaluation of inventories held (Answer: higher pre-tax profits)