Financial Statements

Cash Flow

Easy

Purchase of goodwill is considered in _______ activity while making Cash Flow Statement.

Operating

Investing

Financing

Operating, Investing and Financing

✅ Correct Option: 2

Goodwill is an intangible non-current asset. Any purchase or sale of non-current assets (tangible or intangible) is classified under investing activities. Therefore, purchase of goodwill results in a cash outflow shown under investing activities in the Cash Flow Statement.

2022: 15 July Shift 2

What is the Cash flow from investing activities?

2025: 15 May Shift 2

The order in which following items appear in the cash flow statement

(A) Cash and cash equivalents at the end

(B) Cash and cash equivalents at the beginning

(D) Proceeds from Issuance of Bonds

Choose the correct answer from the options given below:

2022: 23 Aug Shift 2

Match List - I with List - II.

List - I	List - II
(A) Bank overdraft	(I) Non cash item
(B) Dividend received	(II) Financing activity
(C) Provision for doubtful debts	(III) Operating activity
(D) Cash received from sale of goods	(IV) Investing activity

Choose the correct answer from the options given below :

2023: 20 June Shift 2

Match List I with List II

LIST I	LIST II
A. Employee benefit expenses	I. Investing activity
B. Dividend received	II. Operating activity
C. Loan raised	III. Extraordinary item
D. Proceeds from earthquake disaster management	IV. Financing activity

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

If debentures are converted into equity shares, it is a/an : _____

2023: 28 May Shift 1

Identify the cash transaction from the following :

Purchase of goodwill is considered in _______ activity while making Cash Flow Statement.

Solution

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